Monthly Inflation Slows Amid Policy Tightening – CBN

 

Nigeria’s month-on-month inflation rate decelerating

Nigeria’s month-on-month inflation rate has decelerated for the third consecutive month in May 2024, according to the Central Bank of Nigeria (CBN). This decline follows the CBN’s implementation of monetary policy tightening measures aimed at curbing inflation.

Consistent Decline in Inflation Rates

The Headline inflation rate decreased to 2.14% in May from 2.29% in April and 3.02% in March, as reported by the National Bureau of Statistics (NBS). This trend marks a significant drop from the high of 3.12% recorded in February, indicating a slowdown in the rise of prices for essential goods.

Food Inflation Trends

Food inflation also saw a decline for the third month in a row, dropping to 2.28% in May from 2.50% in April and a peak of 3.79% in February, according to NBS data. This reduction is a positive sign of stabilizing food prices, which are crucial for the overall cost of living.

Effective Monetary and Fiscal Policies

The CBN’s Monetary Policy Committee (MPC) attributes this consistent decline in inflation to a combination of tighter monetary policies and well-coordinated fiscal measures from the Federal Government. The CBN’s statement highlighted the effectiveness of these strategies in mitigating the sharp increases in the cost of living that have affected Nigerians since the COVID-19 pandemic.

“Slowly but surely, the inflation tide is turning,” stated Muhammad Sani Abdullahi, Deputy Governor of the Economic Policy Directorate at the CBN. He emphasized the ongoing efforts to ensure that the worst of the inflationary cycle is behind us.

Year-on-Year Inflation Trends

In addition to the monthly improvements, year-on-year inflation slowed in May for 13 Nigerian states, including Abuja, Akwa Ibom, Borno, Cross River, Delta, Katsina, Ondo, Oyo, and Rivers. This broad-based reduction across multiple regions further underscores the positive impact of the CBN’s policies.

Conclusion

The CBN remains committed to working diligently with coordinated policy measures to sustain this downward trend in inflation. By continuing these efforts, the CBN aims to achieve stable prices and improve the economic conditions for all Nigerians.