Annual Inflation Sinks Further In July
Annual inflation in Nigeria slowed to 11.14 percent in July, its lowest level in more than two years, the National Bureau of Statistics said on Wednesday, but it remained above the central bank’s single-digit target.
Inflation has declined in Nigeria since February last year, but the rate of decline has slowed compared with earlier this year. The central bank governor has warned that it may start to rise later this year as spending increases before a presidential election in February 2019.
Nigeria emerged from its first recession in 25 years in 2017 as higher oil prices and recent debt sales helped the country accrue billions of dollars in foreign reserves. Growth remains fragile, though.
The central bank is now looking for ways to boost credit while keeping a lid on inflation.