Nigeria’s inflation rate dropped to 32.15% in August 2024, down from 33.40% in July. This is the second consecutive month of decline, driven by easing food prices after the harvest season.
Nigeria’s inflation rate fell for the second consecutive month, with the Nigerian Bureau of Statistics (NBS) reporting a 32.15% inflation rate in August 2024, down from 33.40% in July. The drop is attributed to easing food prices following the harvest season, with food inflation decreasing from 39.53% in July to 37.52% in August.
Although inflation remains significantly above the Central Bank of Nigeria’s (CBN) 21% target, this recent decrease could influence the central bank’s upcoming monetary policy committee (MPC) meeting on September 23, where they may decide to hold interest rates. In June, the MPC raised interest rates to 26.25% to combat inflationary pressures.
However, analysts warn that the inflation respite may be temporary. Recent fuel price hikes, with petrol costs rising by 40% after months of scarcity, could drive inflation upwards in the coming months. The Nigerian National Petroleum Company (NNPC) has also acknowledged debts to petrol suppliers, which could affect fuel pricing further.
Experts suggest that ongoing economic reforms, particularly in fuel pricing and currency devaluation, may result in renewed inflationary pressures. These reforms, aimed at improving public finances, have significantly raised the cost of living for many Nigerians. Protests in August 2024 called for lower electricity tariffs and the reinstatement of the recently scrapped fuel subsidies.
To tackle inflation effectively, analysts recommend closer coordination between fiscal and monetary authorities. This policy alignment could ease the inflationary pressures that continue to impact Nigeria’s economy.
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