Nigeria’s inflation rate has fallen to 33.40% in July 2024, marking the first decline since December 2022. This decrease of 0.79% from June’s rate of 34.19% indicates a slowdown in the rate of price increases.
Financial analysts had projected a decline in inflation from July to August, citing a slowdown in price increases.
“The picture is that the rate of increase in price level has begun to slow. Hence we are projecting that information will begin to decline from July to August”, the Chief Executive Officer of Financial Derivatives said in June.
The Central Bank of Nigeria (CBN) has raised interest rates to combat inflation, with the latest increase being 50 basis points to 26.75% in July. CBN governor, Olayemi Cardoso had earlier assured that the Monetary Policy Committee would do everything to tame inflation.
As part of measures to ensure inflation is tame, CBN through MPC has continued to raise interest rates.
The removal of fuel subsidies and a weakening local currency had contributed to a 28-year high inflation rate of 34.19% in June.
Food inflation, which accounts for the bulk of Nigeria’s inflation basket, slowed down to 39.5% in July, from 40.8% in June.
The annual core inflation rate, which excludes farm produce and energy, reached a new record high of 27.47% in July
