…Eases to 33.4% in July, rate hike pause likely
Nigeria’s annual inflation slowed for the first time in 19-month in July to 33.4%. This is as a result of a high base effect, giving relief to the Central Bank of Nigeria on further hike.
This year the Monetary Policy Committee has raised the interest rate by 800 basis points to 26.75 percent to fight stubbornly high inflation.
According to the National Bureau of Statistics, Consumer’s Price Index declined to 33.40 percent in July 2024 from 34.19 percent in June 2024.
“We expect to see a moderation, when we say a moderation, it’s only due to high base effects from last year. On a month-on-month basis, I think inflation will still be a bit high,” Tunde Abioye, research analyst at FBNQuest said in a recent report.
“But, overall, m/m inflation is likely to remain elevated. The year-on-year should start to taper down a bit due to base effects. We think inflation should peaked in June/July. So we should begin to see some moderation go forward,” he said.
Read also: Why analysts see inflation declining in July
On a month-on-month basis headline inflation also slowed to 2.28 percent in July 2024 from 2.31 percent in June 2024.
“I don’t think rates are going to come down this year. I’d be surprised,” Abidote said
Nigeria’s Inflation slows to 19-month low to 33.95 percent, putting away further rate
