The Central Bank of Nigeria (CBN) has announced a decrease in the country’s headline month-on-month inflation rate for the third consecutive month as of May 2024.
In a statement released over the weekend, the CBN attributed this decline to the monetary policy tightening measures implemented earlier this year. According to data from the National Bureau of Statistics (NBS), headline inflation slowed to 2.14 percent in May, down from 2.29 percent in April and 3.02 percent in March.
The NBS data highlighted a drop in the monthly inflation rate from a peak of 3.12 percent in February. Food inflation also declined for the third consecutive month, falling to 2.28 percent in May from 2.50 percent in April and 3.79 percent in February.
The CBN statement read: “The monthly inflation trend underscores the conviction from members of the CBN’s Monetary Policy Committee (MPC) that a combination of tighter monetary policy and coordinated fiscal measures from the Federal Government will effectively address 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 rise, the monthly figures are crucial in isolating the impact since the CBN began raising interest rates in February this year.”
Muhammad Sani Abdullahi, Deputy Governor of the Economic Policy Directorate at the CBN, said, “Slowly but surely, the inflation tide is turning. 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.”
The statement also noted that 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 nationwide month-on-month inflation rate decline is reflected in the slowing pace of price rises for some food staples.
CBN Governor Olayemi Cardoso has prioritized tackling inflation as the essential path to achieving sustainable economic growth in the mid- to long-term and improving the standard of living for ordinary people.
