Nigeria’s inflation rate has dropped for the second consecutive month, falling to 32.15% in August 2024, as food prices eased following the harvest season.
According to the Nigerian Bureau of Statistics (NBS), headline inflation in August stood at 32.15%, down from 33.40% recorded in July. Food inflation also fell to 37.52% from 39.53% over the same period.
Although inflation remains well above the Central Bank of Nigeria’s (CBN) 21% target, the recent reading may prompt the central bank to hold interest rates during its upcoming monetary policy committee (MPC) meeting on September 23.
In June, the MPC raised borrowing rates to 26.25% in an effort to curb inflationary pressures.
Analysts predict that recent fuel price hikes—up by 40% following two months of scarcity—will likely drive inflation upward in the coming months, with the Nigerian National Petroleum Company (NNPC) acknowledging debts to petrol suppliers.
Experts argue that ongoing policy adjustments, particularly in fuel pricing and currency devaluation, may lead to a renewed rise in inflation.
The recent reforms, aimed at improving public finances and boosting economic growth, have led to a sharp rise in the cost of living for many Nigerians.
The deceleration in inflation offers a brief respite to Nigerians, who have been struggling with soaring living costs.
In August, widespread protests broke out, with citizens demanding lower electricity tariffs and the reinstatement of the recently scrapped fuel subsidies.
To alleviate currency and inflation pressures in Nigeria, closer policy coordination between fiscal and monetary authorities is essential.
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