Nigeria’s headline month-on-month inflation rate has slowed for the third consecutive month in May 2024, indicating that the Central Bank of Nigeria’s (CBN) monetary policy tightening measures are having the intended effect.
According to the National Bureau of Statistics (NBS), headline inflation decelerated to 2.14% in May from 2.29% in April and 3.02% in March. This marks a significant decline from the high of 3.12% recorded in February. Reflecting a slowdown in price increases for essential goods, food inflation also fell for the third consecutive month to 2.28% in May, down from 2.50% in April and 3.79% in February.
The trend of monthly inflation underscores the conviction 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 addressing the sharp increase in the cost of living that has affected Nigerians since the aftermath of the COVID-19 epidemic. While year-on-year inflation continues to rise, the monthly numbers are critical indicators of 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 nationwide decline in the month-on-month inflation rate is reflected in the 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.
