Updated nigerian inflation falls for fifth straight month

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Updated Nigerian Inflation Falls for Fifth Straight Month

The Nigerian inflation rate has continued its downward trend, falling for the fifth consecutive month in August 2022. According to the National Bureau of Statistics (NBS), the country's inflation rate decreased to 17.01% in August, down from 17.38% in July.

This development is a welcome relief for Nigerians, who have been grappling with rising prices and cost of living for several years. The decline in inflation is attributed to a combination of factors, including:

  1. Monetary policy: The Central Bank of Nigeria (CBN) has implemented several monetary policy measures to curb inflation, including increasing interest rates and reducing liquidity in the system.
  2. Fiscal policy: The government has also implemented fiscal policies aimed at reducing the budget deficit and increasing revenue, which has helped to reduce inflationary pressures.
  3. Food supply: Improved food supply and production have also contributed to the decline in inflation, as prices of essential commodities such as rice, wheat, and maize have decreased.
  4. Exchange rate: The stability of the naira against major currencies has also helped to reduce inflation, as import prices have decreased.

The NBS reported that the average annual inflation rate for the 12 months to August 2022 was 18.17%, down from 18.44% in the previous month.

While the decline in inflation is a positive development, it is still above the CBN's target rate of 6-9%. The CBN has vowed to continue implementing policies aimed at reducing inflation and maintaining price stability.

Impact on the economy

The decline in inflation is expected to have a positive impact on the Nigerian economy, including:

  1. Increased consumer spending: As prices fall, consumers are likely to increase their spending, boosting economic activity and growth.
  2. Investment: The decline in inflation may also attract foreign investment, as investors become more confident in the country's economic prospects.
  3. Job creation: As the economy grows, job creation is likely to increase, reducing unemployment and improving living standards.

Overall, the decline in inflation is a positive development for Nigeria, and it is expected to have a positive impact on the economy and living standards.