Nigeria’s inflation rate dips first time in 19 months

• Published On: 15 August 2024 at 17:35

Nigeria's inflation rate has fallen for the first time in 19 months, potentially indicating that the central bank's successive interest rate hikes are beginning to have an impact.

This development provides a ray of hope for Nigerians facing the country's worst cost of living crisis in decades.

According to the latest data from the Nigerian Bureau of Statistics, the headline inflation rate in July was 33.40%, down from 34.19% in June.

Food inflation also improved, falling to 39.53% from 40.87% the month before.

Norreberger analyst Samuel Onyenkanmi commented on the figures, saying, "The moderations we have been expecting for the longest time might start to happen through the end of the year."

This slowdown in inflation may provide some relief to Nigerians who have borne the brunt of President Tinubu's economic reforms.

Protests in recent months have called for lower electricity tariffs and the reinstatement of fuel subsidies.

In response to rising food prices, the government suspended taxes and import duties on staple crops such as maize and wheat for 150 days in July.

However, the economic outlook remains mixed. Core inflation, which excludes volatile items such as farm produce and energy, rose to 27.47%, driven by increases in rent, transportation, and other services.

As Nigeria navigates these economic challenges, the coming months will be critical in determining whether this inflation drop is a turning point or merely a temporary respite in the country's ongoing financial difficulties.