Nigeria's Core Inflation Eases Amid Exchange Rate Stability

The Centre for the Promotion of Private Enterprise (CPPE) reported that the continued easing of core inflation in Nigeria indicates a positive impact from exchange rate stability, which has improved macroeconomic conditions and moderated import inflation. The Nigeria Bureau of Statistics released data showing that the headline inflation rate decreased marginally from 15.93% in May to 15.91% in June, with month-on-month inflation moderating from 1.75% to 1.66%.

Dr. Muda Yusuf, Chief Executive Officer of CPPE, stated that the stabilization of headline inflation is encouraging, although the report suggests that further monetary tightening is not warranted at this time.

The primary drivers of inflation remain structural rather than demand-induced. CPPE anticipates that the Monetary Policy Committee will maintain its current stance in the upcoming meeting, emphasizing the need for collaboration between monetary and fiscal authorities to accelerate structural reforms, enhance food supply, and reduce energy costs.