Nigeria Content Online

Nigeria’s
consumer inflation eased to 10.3 percent year-on-year in June from 11.0
percent the previous month, its lowest level for more than two years,
the National Bureau of Statistics said on Friday.

Growth
in food prices, which form the bulk of the inflation index basket in
Africa’s most populous country, also eased, to 12.0 percent
year-on-year from 12.3 percent in May.

The
growth in consumer prices, is the lowest monthly year-on-year increase
since May 2008, when it rose to 9.7 percent, according to figures from
the statistics office.

“Once
again, despite ample domestic liquidity, Nigerian inflation surprises
with a year-on-year fall,” said Razia Khan, head of Africa research at
Standard Chartered.

“For now, it supports an unchanged monetary policy stance, but the central bank will still need to watch future risks closely.”

Nigeria’s
benchmark interest rate has been on hold at 6 percent for more than a
year as the central bank prioritises stimulating growth in sub-Saharan
Africa’s second-largest economy despite the inflationary risks.

The
monetary policy committee noted again at its last meeting just over 10
days ago that inflation remained a potential concern, but this is the
second month in a row that headline inflation has eased.

The statistics bureau said the rise in the food index, was caused
mainly by slight increases in the prices of some staples like yam,
potatoes and meat as well as fruit and beverages.