Central bank hypes monthly inflation reductions

Oluremi AgbejuleJune 23, 20242 min

The Central bank is pleased that it’s monetary policy tightening appears to be yielding results in view of consecutive slowing of monthly inflation rates

CBN governor
CBN Governor, Yemi Cardoso

The Central Bank of Nigeria (CBN) has expressed delight at the consecutive reduction in monthly inflation rates.

A statement by the communications department of the apex bank weekend said year-on-year inflation slowed in May for 13 Nigerian states, including the Federal Capital Territory (FCT) Abuja, Akwa Ibom, Borno, Cross River, Delta, Katsina, Ondo, Oyo and Rivers.

It also said the month-on-month inflation rate decline, which is nationwide, is reflected in a slowing pace of price rises for some food staples. 

The statement said the CBN Governor, Olayemi Cardoso, has made tackling inflation his paramount mission as the essential path to achieving sustainable economic growth in the mid-to-long term and improving the standard of living for ordinary people. 

Nigeria’s headline month-on-month inflation rate slowed for a third time in a row in May 2024, the clearest indicator yet that the Central Bank monetary policy tightening measures enacted this year are having the intended effect.

The statement referenced the National Bureau of Statistics (NBS) and reported that headline inflation decelerated in May to 2.14 per cent from a month earlier, slowing from 2.29 per cent in April and 3.02 per cent in March. The monthly rate has declined from as high as 3.12 per cent in February. Reflecting a slowdown in price increases for essential goods, food inflation also fell for a third consecutive month to 2.28 per cent in May, from 2.50 per cent in April, and as much as 3.79 per cent in February, the NBS data shows.

According to the statement, 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 epidemic. 

“Slowly but surely, the inflation tide is turning,” said Muhammad Sani Abdullahi, Deputy Governor, Economic Policy Directorate at the CBN. “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.”

Oluremi Agbejule

Oluremi is a program assistant at OrderPaper, broadcaster, writer and Alumni of Nigeria media innovation program NAMIP.

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