A Tale of Two Sides
Yesterday, the National Bureau of Statistics (NBS) released the Consumer Price Index (CPI) for April 2024. Inflationary pressures persisted as headline inflation climbed 49bps to 33.69% YoY compared to 33.20% YoY in March 2024. This uptick was driven by both food inflation (+52bps to 40.53% YoY) and core inflation (+94bps to 26.84% YoY). Conversely, on a month-on-month (MoM) basis, headline inflation moderated by 73bps to 2.29% MoM (compared to 3.02% MoM in March 2024) for the second consecutive month. This decline was on the back of both food prices (-111bps to 2.50% MoM) and core inflation (-34bps to 2.20% MoM). While the month-on-month slowdown offers a glimmer of hope, Nigeria’s inflation situation remains a cause for concern. The significant cost increases, particularly in food prices, continues to pose a challenge for Nigerians every day. Policymakers will need to address the underlying causes of inflation to bring down prices in the medium to long term and ensure economic stability.
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