The country’s inflation rate eased for the second consecutive month in May, dropping to 22.97% from April’s 23.71%, offering cautious optimism amid ongoing economic reforms. The decline follows a major rebasing of inflation metrics and a revised consumer price basket, which earlier caused a dramatic shift from December’s 34.80% to 24.48% in January. While food inflation—long a key pressure point—also dipped slightly to 21.14%, it remains a significant contributor to overall costs. As reforms take effect, analysts are watching to see if this downward trend will hold. Meanwhile, the Central Bank of Nigeria, encouraged by signs of macroeconomic stability, maintained interest rates for a second time this year, following multiple hikes in 2024.
Reuters
