Nigeria’s inflation rate has eased to its lowest level in three years, falling below the 20% threshold to 18.02%, according to the Consumer Price Index (CPI) report released by the National Bureau of Statistics (NBS) on Wednesday.
The data revealed that annual inflation slowed to 18.02% in September from 20.1% in August, extending the disinflationary trend for the sixth consecutive month. Analysts say the sustained moderation in consumer prices could influence the Central Bank of Nigeria’s (CBN) decision to lower interest rates at its next Monetary Policy Committee (MPC) meeting scheduled for November 25.
On a month-on-month basis, the consumer price index increased by 0.72%, slightly below the 0.74% recorded in August, indicating a minor easing in price pressures.
Food inflation, which has been a major driver of headline inflation, recorded a significant decline. It dropped to 16.87% year-on-year in September, compared to 21.87% the previous month. On a monthly basis, the food index fell by 1.57%, reversing the 1.65% increase recorded in August.
The NBS attributed the slowdown in food prices to reduced costs of key staples, including maize, garri, beans, millet, potatoes, onions, eggs, tomatoes, and fresh pepper, among others.
Meanwhile, core inflation—which excludes volatile items such as farm produce and energy—also eased, declining to 19.53% year-on-year in September from 20.33% in August. Month-on-month, the core index slowed to 1.42%, reflecting a broad-based moderation in consumer demand.
Economists believe the new data signals a potential shift in monetary policy. “The consistent decline in inflation suggests that Nigeria is beginning to see the effect of tightened monetary measures and better food supply chains,” one analyst noted.
If the trend continues, the CBN could consider a rate cut to stimulate growth, especially as inflation aligns closer to the government’s target range.
