In August 2024, Nigeria’s inflation rate declined for the second consecutive month. According to the National Bureau of Statistics (NBS), the rate fell to 32.15%, down from 33.40% in July. This represents a 1.25% decrease from the previous month.

Food inflation also saw a drop, standing at 37.52% in August, down from 39.53% in July. This decline in inflation comes even as fuel pump prices have recently increased, which is expected to impact the economy in the near future.

Johnson Chukwu, Managing Director of Cowry Asset Management, commented that the effects of the higher petrol prices will likely be felt more strongly in the coming months.

The Central Bank of Nigeria has been raising interest rates to combat inflation, with the most recent increase pushing the rate to 26.75% in July. Despite these measures, many Nigerians continue to face rising costs for goods and services.