For the second consecutive month, Nigeria’s inflation rate has dropped.
According to the Consumer Price Index (CPI) report, released on Tuesday by the National Bureau of Statistics (NBS), headline inflation eased to 22.97% in May, this year, from 23.71% in April. It was 24.23% in February.
Experts agreed that the stability in the foreign exchange rates, reduction in energy costs and improved agricultural activities contributed to the sustained decline in average costs of goods and services.
On Monday, the Minister of Finance and Coordinating Minister of the Economy, Chief Wale Edun, and the Governor of the Central Bank of Nigeria (CBN), Dr. Olayemi Cardoso had a meeting as part of efforts to deepen fiscal and monetary policy coordination and consolidate the gains of the macro-economic reforms.
The meeting between the two leading members of the economic management team focused on strategies to consolidate the continuing improvements in prices.
It also addressed ways to ensure that macroeconomic gains are not only sustained but translated into tangible benefits for the broader economy.
According to the statement after the meeting, the officials reviewed ongoing policy reforms and examined how closer coordination between fiscal and monetary levers can help stabilise prices, restore investor confidence, and unlock new pathways for private-sector-driven growth.
The CPI report showed a general decrease in prices across the sectors. Food inflation dropped by 12 basis points from 21.26% in April to 21.14% in May. Core inflation-all items excluding farm produce and energy, also eased by 110 basis points to 22.28% in May from 23.39% in April.
On a month-on-month basis, the headline inflation rate in May was 1.53%, which was 0.33% lower than 1.86% recorded in April.
NBS reported that three major contributors to the headline inflation were food and non-alcoholic beverages: 9.20%, restaurants and accommodation services: 2.97%, and transport: 2.45%; while the least contributors were recreation, sport, and culture: 0.07%, alcoholic beverages, tobacco, and narcotics: 0.09%, and insurance and financial services: 0.11%.
