Nigeria’s inflation rate sees first decline in nearly two years

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Nigeria’s beleaguered economy has offered a glimmer of hope as the National Bureau of Statistics (NBS) announced a decline in the country’s inflation rate for July. The figure, which fell to 33.40 percent from 34.19 percent in June, marks the first such decrease in 19 months.

The NBS attributed the drop to a 0.3 percent point decline in the headline inflation rate compared to the previous month. While the year-on-year increase in prices remains significant at 9.32 percent, the month-on-month rate has eased slightly to 2.28 percent.

The bureau said the headline inflation rate in July showed “0.3% points lower when compared to the June 2024 headline inflation rate”.

“On a year-on-year basis, the headline inflation rate was 9.32% points higher compared to the rate recorded in July 2023, which was 24.08%,” NBS said.

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“This shows that the headline inflation rate (year-on-year basis) increased in July 2024 compared to the same month in the preceding year (i.e., July 2023).

“Furthermore, on a month-on-month basis, the headline inflation rate in July 2024 was 2.28%, which was 0.03% lower than the rate recorded in June 2024 (2.31%). This means that in July 2024, the rate of increase in the average price level was lower than the rate of increase in the average price level in June 2024.”

This development comes as a welcome relief for Nigerians grappling with the rising cost of living. The high inflation rate has put a strain on households and businesses, eroding purchasing power and hindering economic growth.

While the downward trend is encouraging, it is important to note that the overall inflation rate remains at a historically high level. The government will need to continue implementing measures to address underlying factors such as food insecurity, exchange rate volatility, and supply chain disruptions.

Tags: NBS, Nigeria, Inflation, Economy, Yemi Cardoso, Bola Tinubu, CBN, Wale Edun, National Bureau of Statistics