Economy

Nigeria’s inflation slows for 16th straight months to 11.61%

Nigeria’s statistical agency, the National Bureau of Statistics, Wednesday announced that the annual inflation rate in Nigeria slowed further to 11.61 percent for the month of May, a welcome deceleration from 12.48 percent in April.

The NBS May figures meant inflation rate has slowed for a 16th straight month, taking consumer-price growth further below the benchmark interest rate set by the Central Bank of Nigeria. (CBN)

Excerpt from the May Monetary Policy Meeting shows that the CBN has prioritised inflation targeting with its continued contractionary stance.

However, there is still diverse opinion on the next course of action for the CBN, as some analysts have begun to predict a possible rate cut in the near term, while others still see such a move far-fetched.

“The primary objective of Nigeria’s central bank is price stability and as long as the inflation rate is still in double digits, re-inflating the economy through a rate cut that will boost productive activities is still unlikely, in the near term,” an analyst told business am.

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