Nigeria’s annual inflation rate has eased for the fourth consecutive month, dropping to 21.88% in July from 22.22% in June, according to the National Bureau of Statistics (NBS).
Despite this decline, food prices continue to rise, with food inflation standing at 22.74% year-on-year in July, up from 21.97% in June.
The moderation in inflation was driven by slower price increases in essential goods like vegetable oil, local rice, maize flour, guinea corn, wheat flour, and millet.
The Consumer Price Index (CPI) rose to 125.9 points in July, a 2.5-point increase from June.
Core inflation, which excludes volatile agricultural products and energy prices, stood at 21.33% year-on-year in July, down from 27.47% in July 2024. Month-on-month, core inflation slowed sharply to 0.97% from 2.46% in June.
The Central Bank of Nigeria has kept its monetary policy rate on hold at 27.50% for the third consecutive time this year, pledging to maintain its current stance until inflation risks recede. Governor Olayemi Cardoso acknowledged that inflation was easing but emphasized the need to sustain disinflation.
