Tony Chukwunyem 
Nigeria’s inflation rate is likely to decline further to 33.2 per cent in August from 33.40 per cent in July, according to a new report by Financial Derivatives Company (FDC) Limited.
The prediction comes on the heels of the Consumer Price Index (CPI) report released by the National Bureau of Statistics (NBS), last Thursday, which showed that Nigeria’s headline inflation rate declined to 33.40 per cent in July 2024 from 34.19 per cent in June 2024, the first deceleration in the last 19 months.
Apart from its forecast for the likely inflation rate in August, the FDC also said it expects Q2’24 Gross Domestic Product (GDP), “ to show a 3.16 per cent modest increase; annual average annual likely at 3.07 per cent, in line with the International Monetary Fund’s (IMF) revised projection.
New Telegraph reports that while reacting to the surprising decline in July inflation, the FDC had stated: “After 19 months of spiraling inflationary pressure, a recent decline could provide a glimmer of hope for the cost-of-living crisis.
The steady price surge has eroded purchasing power, leaving many families struggling to make ends meet. “This latest dip in inflation, while modest, suggests that the relentless upward pressure on prices is beginning to ease.
This slowdown in price increases can stabilise household expenses, making it easier for consumers to manage their finances without constantly adjusting to rising costs.
While prices aren’t necessarily falling, the slower pace of inflation is a positive sign that economic pressures might be starting to recede.” “However, the impact of months of high inflation will linger, and the costof-living crisis won’t be resolved overnight.
Nonetheless, the recent decline in inflation is a welcome development, offering some relief and a potential path toward economic stability,” the firm added.
