Inflation on decline, says CBN


From Adanna Nnamani, Abuja

The Central Bank of Nigeria (CBN) has reported that Nigeria’s headline month-on-month inflation rate has decreased, marking the third consecutive slowdown in May 2024.

The CBN in a statement over the weekend, said the decline is a clear indication that the monetary policy tightening measures it enacted this year are having the intended effect.

The apex bank quoted data from the National Bureau of Statistics (NBS) which showed that headline inflation decelerated in May to 2.14 percent from a month earlier, slowing from 2.29 per cent in April and 3.02 per cent in March.

It said the data from the NBS indicates that the monthly rate has decreased, dropping from a peak of 3.12 percent in February. Additionally, food inflation has declined for the third consecutive month to 2.28 percent in May, down from 2.50 percent in April and 3.79 percent in February.

The statement read: “The monthly inflation trend underscores conviction from members of the CBN’s Monetary Policy Committee (MPC) that a combination of tighter monetary policy and appropriate coordinated fiscal measures from the Federal Government will prove effective in arresting the sharp increase in the cost of living that has afflicted Nigerians since the aftermath of the Covid epidemic. While year-on-year inflation has continued to inch higher, it is the monthly numbers that are the all-important indicators isolating the impact since the CBN began raising interest rates in February this year.

“Slowly but surely, the inflation tide is turning,” said Muhammad Sani Abdullahi, Deputy Governor, Economic Policy Directorate at the CBN. “While the numbers are not yet uniform for all measures, such as year-on-year across the entire country, we will continue to work diligently with coordinated policy measures to ensure that the worst of the inflationary cycle is behind us in the nearest future.”

“Year-on-year inflation slowed in May for 13 Nigerian states, including Abuja, Akwa Ibom, Borno, Cross River, Delta, Katsina, Ondo, Oyo and Rivers. The month-on-month inflation rate decline, which is nationwide, is reflected in a slowing pace of price rises for some food staples.

“CBN Governor Olayemi Cardoso has made tackling inflation his paramount mission as the essential path to achieving sustainable economic growth in the mid- to long-term and improving the standard of living for ordinary people.”

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