Afrigather Nigeria’s headline inflation has slowed for the second consecutive month due to a drop in meals costs pushed by the harvest season.
Information from the Nigerian Bureau of Statistics (NBS) places August’s headline inflation at 32.15%, down from 33.40% recorded in August. Meals inflation additionally slowed to 37.52% from 39.53% in July 2024.
Though the August inflation price is removed from the CBN’s 21% goal, the studying might see the Central Financial institution maintain rates of interest at their financial coverage committee assembly on September 23. The MPC in June elevated borrowing charges to about 26.25%.
Analysts anticipate that latest will increase in gas costs will have an effect on inflation for the approaching months. Nigeria raised gas costs by 40% after two months of gas shortage. The Nigerian Nationwide Petroleum Firm (NNPC) admitted that it owed petrol suppliers.
“Latest coverage modifications impacting petrol costs and the worth of the naira might set off an uptrend within the inflation price within the coming months,” stated Samuel Onyenkanmi, an analyst at Norreberger.
The slowdown in Nigeria’s headline inflation will present some ease to Nigerians who’ve endured excessive residing prices. In August, a whole bunch of residents protested demanding decrease electrical energy tariffs and the reinstatement of gas subsidies.
“To alleviate foreign money and inflation pressures in Nigeria, nearer coverage coordination between fiscal and financial authorities is important,” Dumebi Oyewole, Senior Economist at Stears, instructed TechCabal.
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