Abuja, Nigeria – Nigeria’s inflation rate decreased to 33.40% in July 2024, down from 34.19% in June 2024 on a year-on-year basis. This marks the first reduction in the inflation rate since December 2022, when it stood at 21.34%.
The National Bureau of Statistics (NBS) released the Consumer Price Index and Inflation report for July on Thursday, indicating a 0.79% decline from June’s rate. This decline aligns with projections by financial analysts who anticipated a cooling of inflation from July to August.
Economic and Policy Responses
The decrease in inflation follows assurances from Central Bank of Nigeria (CBN) Governor Olayemi Cardoso that the Monetary Policy Committee (MPC) would take necessary actions to control inflation. In line with this, the CBN has continued to raise interest rates, with the latest adjustment in July raising the rate by 50 basis points to 26.75%, up from 26.25% in May.
In addition to monetary policy measures, the Nigerian government has introduced fiscal policies to address inflation. These include zero import duties on selected staple foods aimed at reducing food prices. Moreover, the Defence Headquarters has deployed troops to farms, particularly in the North East and North Central regions, to support a smooth farming season.