The Central Bank of Nigeria (CBN) stated that its rate-tightening monetary policy has been effective, evidenced by the slowing down of the country’s headline inflation.
“In May 2024, the month-on-month inflation rate slowed for the third consecutive time, signaling that the Central Bank of Nigeria’s tightening monetary policy measures implemented this year are achieving their desired impact,” the statement highlighted.
National Bureau of Statistics (NBS) data indicate that headline inflation decelerated to 2.14 percent in May from the previous month’s 2.29 percent in April and 3.02 percent in March.
The monthly inflation rate has steadily decreased since reaching 3.12 percent in February.
Reflecting a moderation in the price increments of essential commodities, food inflation also dropped for the third consecutive month to 2.28 percent in May, down from 2.50 percent in April and as high as 3.79 percent in February.
The central bank highlighted that the monthly inflation trend reaffirmed the Monetary Policy Committee’s belief that a mix of stricter monetary policy and coordinated fiscal measures by the Federal Government would effectively curb the sharp rise in living costs experienced by Nigerians since the aftermath of the Covid epidemic.
