Nigeria’s inflation rate has finally begun to slow down, dropping 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 decline aligns with financial analysts’ projections, who expected inflation to cool off from July to August. As stated by the CEO of Financial Derivatives, “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.”
The Central Bank of Nigeria (CBN) has been working to tame inflation through monetary policy measures, including raising interest rates. In July, the CBN raised the interest rate by 50 basis points to 26.75% from 26.25% in May. Additionally, the Nigerian government has introduced fiscal measures, such as zero import duties on selected staple foods, to tackle inflation.
The government’s efforts to address inflation also include deploying troops to farms, particularly in the North East and North Central, to ensure a hitch-free farming season. This move aims to increase food production and reduce prices.
CBN Governor Olayemi Cardoso had earlier assured that the Monetary Policy Committee would do everything to tame inflation. The latest decline in inflation rate suggests that these efforts are yielding results.
