Grace Ashiru
Nigeria’s inflation has finally slowed for the first time in 19 months, sparking hope that the series of rate hikes might be starting to show some effect. This development is likely to be welcomed by Nigerians who are enduring the worst cost of living crisis in decades.
According to data from the Nigerian Bureau of Statistics, headline inflation in July stood at 33.40%, a decrease from the 34.19% recorded in June. Similarly, food inflation saw a decline, dropping to 39.53% from 40.87% in June 2024.
“The moderations we have been anticipating for a long time may begin to materialize by the end of the year,” said Samuel Onyenkanmi, an Analyst at Norreberger.
A slowdown in inflation is set to provide some relief to citizens who have been significantly impacted by Tinubu’s reforms. These citizens have taken to the streets in protest, calling for reduced electricity tariffs and the reinstatement of fuel subsidies. In response, the government took action in July, suspending taxes and import duties on essential food items like maize and wheat for 150 days, a strategy intended to bring down food costs.
However, while there has been progress in food and headline inflation, core inflation—which excludes farm produce and energy—has accelerated to 27.47%, largely driven by rising costs in rent, transportation, and other services.
