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Monthly inflation slowed amid policy tightening – CBN

 


Nigeria’s headline month-on-month inflation rate has reportedly slowed for a third time in a row in May 2024, according to the Central Bank of Nigeria.

 

The reduction follows the monetary policy tightening measures created to achieve that effect, the CBN says in a statement.

 

The Headline inflation decelerated in May to 2.14 percent from a month earlier, slowing from 2.29 per cent in April and 3.02 per cent in March, according to the National Bureau of Statistics (NBS).

 

The monthly rate declined from as high as 3.12 percent in February, reflecting a slowdown in price increases for essential goods, food inflation also fell for a third consecutive month to 2.28 per cent in May, from 2.50 per cent in April, and as much as 3.79 per cent in February, the NBS data show.

 

The statement said the ”monthly inflation trend underscores conviction from members of the CBN’s Monetary Policy Committee (MPC) that a combination of tighter monetary policy and appropriately coordinated fiscal measures from the Federal Government will prove effective in arresting the sharp increase in the cost of living that has afflicted Nigerians since the aftermath of the COVID epidemic.

 

“Slowly but surely, the inflation tide is turning, said Muhammad Sani Abdullahi, Deputy Governor, 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.”

 

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

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