Recent data shows a gradual slowdown in Nigeria’s monthly inflation rate for the third consecutive month, signaling the efficacy of the Central Bank of Nigeria’s monetary policy adjustments.
In a statement released to journalists, the CBN emphasized this positive trend over the weekend.
Figures from the National Bureau of Statistics reveal that the headline month-on-month inflation rate dropped to 2.14% in May, marking a decrease from 2.29% in April and 3.02% in March. Additionally, food inflation decreased to 2.28% in May, also for the third consecutive month.
Muhammad Abdullahi, the Deputy Governor of the Economic Policy Directorate at the CBN, stated, “The tide seems to be turning on inflation. Through continued collaborative policy actions, we aim to put the worst of the inflationary cycle in the past.”
The CBN has been unwavering in its efforts to tackle inflation since February, with the monthly data suggesting a positive trajectory. Although year-on-year inflation is on the rise, the monthly rates indicate a deceleration in price hikes for essential commodities.
Olayemi Cardoso, the Governor of the CBN, has prioritized combating inflation to foster sustainable economic growth and enhance the quality of life for Nigerians.
The decrease in inflation rates is not limited to a few regions but is a nationwide phenomenon, with 13 states – such as Abuja, Akwa Ibom, and Rivers – witnessing a slowdown in year-on-year inflation in May.
Abdullahi expressed optimism, stating, “These trends signal that the CBN’s strategies are yielding results, potentially providing relief to Nigerians grappling with the persistent high cost of living post the COVID-19 pandemic.”