First Inflation Drop in Nigeria Since 2022

Nigeria’s inflation rate has decreased for the first time since 2022, signaling a potential shift in the economic landscape.

In July 2024, there was a year-on-year decline in Nigeria’s inflation rate from 34.19 percent to 33.40 percent.

The country’s inflation has cooled down for the first time since December 2022, when it was at a high of 21.34 percent.

On Thursday, the most recent Consumer Price Index and Inflation data for July was published by the National Bureau of Statistics.

There was a decrease of 0.79 percent from the June 2024 figure, which stood at 34.19 percent.

Financial analysts predicted that the country’s inflation would decrease between July and August, a decline which was subsequently observed as expected.

Read Also: CBN: Nigerian Banks’ Non-Performing Loans Fall to 3.9% in June

In June, the CEO of Financial Derivatives stated that the rate at which prices are increasing has started to slow down; therefore, they predict a decline in information from July until August.

The governor of CBN, Olayemi Cardoso, had previously guaranteed that the Monetary Policy Committee would take all necessary actions to control inflation.

To keep inflation under control, the CBN has consistently increased interest rates via MPC actions.

The most recent instance occurred in July, wherein the rate was incremented by 50 basis points from its May figure of 26.25 percent to reach 26.75 percent.

Furthermore, to combat inflation, the government of Nigeria has recently implemented fiscal policies that involve exempting certain staple goods from import duties.

Furthermore, it should be noted that the Defence Headquarters has recently announced the deployment of troops to farms located in both North East and North Central regions with a view to ensuring an uninterrupted agricultural season throughout Nigeria.