Nigeria’s inflation slows for the first time in 19 months

…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.

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

Nigeria's Inflation down in July Inflation Eases to 33.4% in July Chart showing inflation Inflation Eases to 33.4% in July,

Eniola Olatunji

Eniola Olatunji is an experienced journalist at BusinessDay, where she has specialized in reporting on personal and business finance since March 2022. She focuses on creating engaging and precise news stories, with a keen emphasis on the fixed-income market, banking, personal finance, cost of living, and the Nigerian economy. Her work also encompasses extensive market research and economic trend analysis. Eniola is passionate about empowering individuals to make informed financial decisions and is dedicated to shedding light on the intricate workings of the economy. She holds a Bachelor of Science degree in Pure & Applied Chemistry from the University of Lagos. Eniola Olatunji was shortlisted for The Future Awards Africa Prize for Journalism..