Nigeria’s inflation rate has finally shown a downward trend, decreasing to 33.40% in July 2024 from 34.19% in June, according to the National Bureau of Statistics’ latest Consumer Price Index and Inflation report. This marks the first time the country has seen a decline in inflation since December 2022, when it stood at 21.34%.
The 0.79% decrease aligns with financial analysts’ predictions, who forecasted a cooling of inflation from July to August. As the Chief Executive Officer of Financial Derivatives noted in June, “The picture is that the rate of increase in price level has begun to slow. Hence, we are projecting that inflation will begin to decline from July to August.”
Central Bank of Nigeria (CBN) Governor Olayemi Cardoso had earlier assured that the Monetary Policy Committee would take necessary steps to tame inflation. To achieve this, the CBN has continued to raise interest rates, with the latest increase being 50 basis points to 26.75% in July.
In addition to monetary measures, the Nigerian government has introduced fiscal policies, including zero import duties on selected staple foods, to combat inflation. Furthermore, the Defence Headquarters has deployed troops to farms, particularly in the North East and North Central regions, to ensure a smooth farming season.
These efforts aim to address the country’s inflationary pressures, and the latest statistics indicate a positive trend. The decline in inflation is a welcome development, and the government’s commitment to controlling price increases is evident. As the CBN and government continue to work together, Nigerians can expect further progress in taming inflation.
