Nigeria Inflation Slows to 15.43% as CBN Weighs September Rate Cut
Updated
Updated · Guardian Nigeria · Aug 17
Nigeria Inflation Slows to 15.43% as CBN Weighs September Rate Cut
2 articles · Updated · Guardian Nigeria · Aug 17
Summary
Nigeria’s headline inflation eased to 15.43% in July from 15.91% in June, giving the Central Bank of Nigeria more room to consider lowering its policy rate at the September MPC meeting.
Food prices are complicating that case: food inflation rose to 20.31% year on year, while monthly food inflation jumped to 5.56% from 3.75%, driven by staples including rice, tomatoes, onions, Garri and beef.
Underlying price data were softer elsewhere, with core inflation at 14.97% year on year and just 0.15% month on month, suggesting broader inflation pressures may be easing faster than food costs.
State data showed wide disparities that could keep policymakers cautious, with Adamawa’s headline inflation at 33.03% and food inflation at 51.36%, versus 7.86% headline inflation in Nasarawa.
The September decision is likely to hinge on whether August inflation, food-price trends and exchange-rate stability confirm a durable disinflation trend rather than a temporary slowdown.