Nigeria’s inflation rate has decreased for the first time since December 2022, dropping to 33.4% in July 2024. This was disclosed by the National Bureau of Statistics (NBS), in its latest report.
The fall marks a 0.79 percentage point decline from the 34.19% recorded in June 2024.
The NBS Consumer Price Index (CPI) report for July 2024 highlights a notable improvement in inflation rates, which had remained persistently high in recent months. Although the current rate is still significantly higher than the 24.08% recorded in July 2023, the decline indicates a positive trend.
On a month-on-month basis, the headline inflation rate for July 2024 stood at 2.28%, a slight decrease from the 2.31% recorded in June 2024. This development suggests a potential easing of inflationary pressures in the Nigerian economy.
Some Nigerians have described the decline in inflation rate as a welcome development.
Mr Ahmed Tosin Yusuf, a United Nations consultant, who spoke with our correspondent on the phone, said that if the NBS data is anything to go by, the purchasing power of Nigerians will increase.
“Lower inflation rate means increased purchasing power for consumers, as the value of money increases.
“I hope the trend will be sustained because it has a lot of positive effects on the economy in terms of boosting and mproving investors’ confidence.
“Investors see lower inflation rate as an attraction which indicates a stable economy. As I have said earlier, if the monetary policy makers maintain its sustenance, it may invariably lead to increased economic stability.”, the economist noted.
Yusuf added, “Since last year, prices of consumer goods have considrably to the extent that an average income earner has found it difficult cater for their needs. A decrease in inflation rate will definitely translate to a reduced cost of living, as prices of goods and services decrease.”
The most populous country in Africa has faced high prices and economic uncertainty in recent times. As the government continues to implement measures to stabilize the economy, this decrease in inflation rate may signal a positive direction for the country’s economic growth.