Nigerian consumer inflation falls to 5-year low in June - CNBC Africa

Nigerian consumer inflation falls to 5-year low in June

Western Africa

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This was revealed by the National Bureau of Statistics (NBS) on Tuesday as prices of non-food items rose more slowly.

Food inflation was up slightly to 9.6 percent year-on-year, from 9.3 percent, the bureau's report said.

"Food prices increased at a faster rate compared to May as the country is deep into the planting season," it added. "Food supplies continue to be tight as inventories decline, creating upward pressure on prices." 

The rate, the lowest since the 8.1 percent recorded in April 2008, was comfortably within the central bank's single-digit inflation target.

The bank's monetary policy committee will meet on Monday and Tuesday of next week to decide on the base interest rate, which has been kept at 12 percent for the past 10 meetings.

Despite the fall in inflation this year, central bank govenor Lamido Sanusi has resisted calls to cut interest rates to improve lending to businesses, arguing that the current hard-won economic stability cannot be taken for granted.

Most analysts expect rates to be held steady again next week.  

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