Nigeria”s inflation slowed to 16.01 percent in August, a 0.04 percent points lower than the 16.05 rate recorded in July.
This makes it the seventh consecutive decline in the rate of headline year on year inflation since January 2017.
The downward trend in inflation was helped by a moderate deceleration in food prices as well as sustained gains from the exchange rate policies of the Central Bank of Nigeria which has helped moderate rising costs of imported items.
According to figures released by the National Bureau of Statistics(NBS), Food inflation moderated marginally to 20.25 percent, indicating a 0.03 percent points cut from the rate recorded in July at 20.28 percent.
The ‘’All Items less Farm Produce’’ or Core sub-index, which measures core inflation eased by 0.10 percent to 12.30 percent points from 12.20 percent recorded in July, according to the NBS.
The Central Bank of Nigeria (CBN) will begin it’s two days Monteary Policy Committee (MPC) meeying on Monday and analysts think that lowering inflation, recent pick up in economic growth as well as stabilising naira could serve as an incentive for members to vote for interest rate cut.
But CBN Governor, Godwin Emefiele continues to signal that it is not yet time for monetary easing considering that inflation is still trending above rates so as not to further discourage investment inflows which he continues to watch closely.
Onyinye Nwachukwu,.Abuja
