Breaking: CBN’s Economic-Policies Yield Results As Inflation-Rates Drop (View Details)

Breaking: CBN’s Economic-Policies Yield Results As Inflation-Rates Drop (View Details)

Nigeria’s headline month-on-month inflation rate decelerated for the third consecutive month in May 2024.

A statement from the Central Bank of Nigeria (CBN) on Saturday attributed this development to the recent monetary policy tightening measures that are beginning to yield results.

The National Bureau of Statistics (NBS) reported that the headline inflation rate for May dropped to 2.14 percent down from 2.29 percent in April and 3.02 percent in March. This marks a significant decline from the peak rate of 3.12 percent observed in February 2024.

Food inflation, a critical component affecting the cost of living, also showed a consistent decline for the third month in a row. The rate dropped to 2.28 percent in May from 2.50 percent in April, and a high of 3.79 percent in February, according to NBS data. The deceleration in food inflation indicates a slowdown in price increases for essential goods, providing some relief to Nigerian households.

CBN Deputy Governor, Economic Policy Directorate, Muhammad Sani Abdullahi, expressed optimism regarding the inflation trend. “Slowly but surely, the inflation tide is turning,” he stated.

Abdullahi emphasised the importance of the monthly inflation figures in reflecting the impact of the CBN’s policy measures since the central bank began raising interest rates in February this year.

“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,” he said.

The CBN’s Monetary Policy Committee (MPC) has been steadfast in its belief that a combination of tighter monetary policy and appropriate coordinated fiscal measures from the Federal Government will effectively address the sharp rise in the cost of living experienced since the aftermath of the Covid-19 pandemic.

Despite the continuous rise in year-on-year inflation, the monthly figures provide a clearer picture of the recent policy impacts.

The CBN noted that in May, year-on-year inflation showed a deceleration in 13 states, including Abuja, Akwa Ibom, Borno, Cross River, Delta, Katsina, Ondo, Oyo, and Rivers.

The nationwide decline in month-on-month inflation is reflected in the slowing pace of price increases for some food staples.

CBN Governor Olayemi Cardoso has prioritized combating inflation as a critical strategy for achieving sustainable economic growth and improving living standards for Nigerians. He noted the bank’s broader mission to stabilize the economy and foster an environment conducive to long-term development.

As the CBN continues to implement and monitor its monetary policies, the focus remains on achieving a stable economic environment. The recent trends in inflation provide a glimmer of hope that the measures are effective, and the central bank is poised to build on this momentum in its ongoing efforts to stabilize prices and support economic growth.