MON JUNE 16 2025-theGBJournal| Nigeria’s headline inflation cooled by 74bps to 22.97% y/y in May from 23.71% in April, cooler-than expected, the National Bureau of Statistics (NBS) reported on Monday.
Month-on-month basis, consumer prices moderated to 1.53% from 1.86% m/m in April.
Food inflation, a key metric moderated by 12bps to 21.14% y/y in May y/y), slightly below the 21.26% reported in April.
On a month-on-month basis, food inflation increased by 13bps to 2.19% from 2.06% in April, attributed to the rate of increase in the average prices of Yam, Avenger (Ogbono/Apon), Cassava Tuber, Maize Flour, Fresh Pepper, and Sweet Potatoes.
Similarly, core inflation (all items excluding farm produce and energy) eased by 110bps to 22.28% y/y in May (April: 23.39% y/y). On a month-on-month basis, the core index moderated sharply by 24bps to 1.10% m/m (April: 1.34% m/m).
The Central of Bank of Nigeria (CBN) held monetary policy after their May 2025 meeting amid moderating inflationary pressures.
The Bank’s Monetary Policy Committee (MPC) decision was to hold Monetary Policy Rate (MPR) at 27.5%, leave the Asymmetric Corridor at +500/-100, Cash Reserve Ratio (CRR) at 50%.
Deposit Money Banks (DMBs) was held at 16% for Merchant Banks and Liquidity Ratio retained at 30%.
The Bank viewed the decelerating inflation figures as evidence that its supportive fiscal measures is beginning to bear fruit.
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