Nigeria’s month-on-month headline inflation rate slowed for the third consecutive time in May 2024, highlighting the effectiveness of the Central Bank of Nigeria’s (CBN) monetary policy tightening measures implemented this year.

According to the National Bureau of Statistics (NBS), headline inflation decelerated to 2.14 percent in May, down from 2.29 percent in April and 3.02 percent in March. This marks a significant decline from the peak of 3.12 percent in February.

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Food inflation, reflecting the trend in essential goods, also fell for the third straight month to 2.28 percent in May, down from 2.50 percent in April and 3.79 percent in February, as per NBS data.

The steady decline in monthly inflation underscores the confidence of CBN’s Monetary Policy Committee (MPC) members that tighter monetary policies, combined with appropriate coordinated fiscal measures from the Federal Government, will effectively combat the sharp rise in the cost of living that has affected Nigerians post-COVID-19.

Despite a continued rise in year-on-year inflation, the monthly figures are critical indicators of the impact of CBN’s interest rate hikes that began in February this year.

“Slowly but surely, the inflation tide is turning,” said Muhammad Sani Abdullahi, Deputy Governor of the Economic Policy Directorate at the CBN. “While the numbers are not yet uniform for all measures, such as year-on-year across the entire country, we will continue to work diligently with coordinated policy measures to ensure that the worst of the inflationary cycle is behind us in the nearest future.”

Year-on-year inflation slowed in May for 13 Nigerian states, including Abuja, Akwa Ibom, Borno, Cross River, Delta, Katsina, Ondo, Oyo, and Rivers.

The nationwide decline in the month-on-month inflation rate is reflected in the slower pace of price increases for some food staples.

CBN Governor Olayemi Cardoso has prioritized tackling inflation as the key to achieving sustainable economic growth in the mid- to long-term and improving the standard of living for ordinary Nigerians.