The Central Bank of Nigeria (CBN), on Saturday boasted that the slowdown in headline inflation rate in the country on a month-on-month basis for a third consecutive time in May 2024, is a clear affirmation of the aptness of its monetary policy stance as it is “having the intended effect.”

The monthly inflation trend, the apex believes, underscores conviction from members of the CBN’s Monetary Policy Committee (MPC) that a combination of tighter monetary policy and appropriate coordinated fiscal measures from the Federal Government will prove effective in arresting the sharp increase in the cost of living that has afflicted Nigerians since the aftermath of the Covid epidemic.

“While year-on-year inflation has continued to inch higher, it is the monthly numbers that are the all-important indicators isolating the impact since the CBN began raising interest rates in February this year,” it added.

Specifically, according to the latest data by the country’s National Bureau of Statistics (NBS), headline inflation decelerated in May to 2.14% from 2.29% in April and 3.02% in March.
The monthly rate, the CBN said, has declined from as high as 3.12% in February, reflecting a slowdown in price increases for essential goods.

As if to confirm its assertion, the CBN also noted the stead fall in food inflation for a third consecutive month to 2.28% in May, from 2.5% in April, and as much as 3.79% in February, citing the NBS data.

Commenting on the development, Muhammad Sani Abdullahi, Deputy Governor, Economic Policy Directorate at the CBN, was quoted as saying: “Slowly but surely, the inflation tide is turning. While the numbers are not yet uniform for all measures, such as year-on-year across the entire country, we will continue to work diligently with coordinated policy measures to ensure that the worst of the inflationary cycle is behind us in the nearest future.”

Year-on-year inflation slowed in May for 13 Nigerian states, including Abuja, Akwa Ibom, Borno, Cross River, Delta, Katsina, Ondo, Oyo and Rivers. The month-on-month inflation rate decline, which is nationwide, is reflected in a slowing pace of price rises for some food staples.

Recall that CBN Governor Olayemi Cardoso has made tackling inflation his paramount mission as the essential path to achieving sustainable economic growth in the mid- to long-term and improving the standard of living for ordinary people.