Nigeria’s headline inflation has dropped to 14.45% in November from 16.05% in October, marking a significant decrease. This is the lowest inflation rate since March 2022. Food inflation, a major component, also moderated to 11.08% year-on-year, down from 39.93% in November 2024.
Key Factors Contributing to the Decline:
– Improved food supply: Ongoing harvest season and increased agricultural output
– Stable exchange rate: Relatively stable Naira supporting reduced import costs
– Favorable base effects: High petrol costs easing out of year-on-year calculations
Economic Outlook:
Experts predict inflation will continue its downward trend, potentially averaging 30.5% in 2025 and settling at 27.1% by December. The Central Bank of Nigeria may adopt a more accommoditive stance, potentially lowering interest rates to boost economic activity.
