….Targets Slower Rate In Months Ahead
The Central Bank of Nigeria (CBN) on Friday maintained that its sustained monetary policy tightening measures since this year had been having the intended effect as Nigeria’s headline month-on-month inflation rate slowed for a third time in a row in May 2024.
The apex bank, in a Press Release issued late Friday, noted that the nation’s headline inflation decelerated in May to 2.14% from a month earlier, slowing from 2.29% in April and 3.02% in March, according to the National Bureau of Statistics (NBS).
It noted that the monthly rate had decelerated from a high 3.12% in February, as the statistical data reflected a slowdown in price increases for essential goods, food inflation also fell for a third consecutive month to 2.28% in May, from 2.50% in April, and as much as 3.79% in February.
According to the CBN, the monthly inflation trend underscores conviction from members 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 arresting the sharp increase in the cost of living that has afflicted Nigerians since the aftermath of the Covid-19 epidemic.
It stated further that while year-on-year inflation had continued to rise higher, the monthly numbers remained the all-important indicators isolating the impact since the commencement of its raising lending interest rates in February this year.
Commenting on the general price level trend in the economy, the apex bank’s Deputy Governor, Economic Policy Directorate, Muhammad Sani Abdullahi, 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 CBN recalled that based on the NBS’ report, the year-on-year inflation slowed in May for 13 Nigerian states, including Abuja, Akwa Ibom, Borno, Cross River, Delta, Katsina, Ondo, Oyo and Rivers, adding that the month-on-month inflation rate decline, which is nationwide, is reflected in a slowing pace of price rises for some food staples.
It would be recalled that CBN Governor, Olayemi Cardoso, had made tackling inflation his prioritized agenda as the essential path to achieving sustainable economic growth in the mid-to-long-term and improving the standard of living of ordinary Nigerians.
