The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, states that inflation is gradually moderating while key economic indicators reflect positive developments. He highlights these trends during the latest Monetary Policy Committee (MPC) meeting held on Thursday.
Cardoso explains that recent macroeconomic trends indicate progress toward price stability. According to him, the foreign exchange market shows stability, leading to an appreciation of the naira and a reduction in petrol prices. These factors influence inflation positively in the near to medium term.
“At this meeting, the Monetary Policy Committee notes with satisfaction recent macroeconomic developments expected to positively impact price dynamics. These include stability in the foreign exchange market, appreciation of the exchange rate, and moderation in the price of PMS,” Cardoso says.
Despite the improvements, Cardoso acknowledges that inflationary pressures persist, particularly due to rising food prices. He also notes the recent rebasing of the Consumer Price Index (CPI) by the National Bureau of Statistics (NBS), which adjusts the weight of various items to better reflect current consumption patterns.
“Members, however, are not oblivious to the ongoing inflationary pressures, largely driven by food prices. The Committee notes the recent rebasing of the CPI by the National Bureau of Statistics, which reviews the weights of items to reflect current consumption patterns,” he adds.
While inflation shows signs of easing, Cardoso cautions that this does not imply a significant drop to low levels. He advises stakeholders to remain patient as economic policies continue to take effect.
The NBS recently modifies its methodology for calculating inflation, resulting in a decline from 34.80% recorded in December 2024 under the previous system. According to the latest report, urban inflation stands at 26.09%, while rural inflation is at 22.15%.
In response to economic challenges, the CBN implements several measures aimed at stabilizing the foreign exchange market and curbing inflation. In January 2024, the apex bank introduces the FX Code for market operators to enhance transparency and market efficiency.
However, analysts warn that structural challenges—including supply chain disruptions, insecurity affecting food production, and fiscal pressures—continue to pose risks to achieving long-term price stability.
, Olayemi Cardoso, states that inflation is gradually moderating while key economic indicators reflect positive developments. He highlights these trends during the latest Monetary Policy Committee (MPC) meeting held on Thursday.){kind=link}