Nigeria inflation falls for first month in well over a year

STORY: In July, Nigeria's headline inflation rate decreased for the first time in well over a year.

It dropped to 33.40% annually from 34.19% in June, data from the statistics agency showed on Thursday (August 15).

Analysts had said June's reading could mark the peak in inflation as currency devaluation effects start to fade.

July's slowdown will offer some relief to Nigerians, who protested this month over the cost-of-living and governance issues.

The last time annual inflation decreased was in December 2022.

Price pressures have been stoked by President Bola Tinubu's decision to remove a decades-old fuel subsidy, devalue the country's currency, and hike electricity tariffs.

The reforms are aimed at lifting economic growth and shoring up public finances but have sent inflation soaring, eroding people's incomes.

The Central Bank of Nigeria's next rate setting meeting is scheduled for late September.

Food and non-alcoholic beverages continued to be the biggest contributor to inflation in July, according to a report by the National Bureau of Statistics.

Food inflation eased to 39.53% from 40.87% in June.