Inflation Has Eased — But Survival Still Feels Hard
Nigeria scored a 0.74 percentage-point dip in May’s headline inflation, falling to 22.97% from 23.71% in April — marking the second consecutive monthly decline
This drop follows the shockwave of fuel subsidy removal and naira devaluation. Plus, the CPI rebasing earlier this year (rebasing from 2009 to 2024) dramatically shifted inflation readings — from nearly 35% in December 2024 to 24.48% in January
Food Inflation: Slightly Better, But Still Painful
- May food inflation is slightly down at 21.14% from 21.26% in April
- Annually, food costs have fallen from 40.66% last year to the current 21.14% — thanks partly to CPI rebasing
- But month-over-month, food prices still climbed 2.19%, especially staples like yams, cassava, and peppers.
Urban vs Rural Split
- Urban inflation eased to 23.14%, while rural areas saw 22.70% year-on-year
- What’s concerning: staples are still rising fast in some states (e.g., Bayelsa and Borno), balancing out declines elsewhere.
What This Means for Households & Policy
| Indicator | Implication |
| Inflation Decline | Slight relief — but not enough to ease everyday burden |
| CPI Rebasing | Numbers clicked down — real pain still felt on the ground |
| Food Inflation Dip | Welcome — but base prices remain unaffordable |
| Policy Room | CBN might start easing interest rates soon |
Financial Juggernut’s Take:
The drop to 22.97% is a positive but real food prices remain sky-high, and average Nigerians still feel the squeeze.
Alright, markets: Is this the start of sustained relief — or a statistical illusion?
What You Should Do Now
- Rethink Your Budget — staple goods still eating your income
- Buy in Bulk — lock in prices at discounts
- Watch CBN Rates —CPI drop could ease borrowing costs
- Protect Your Savings — use Treasury bills or inflation-adjusted accounts
interesting
Nice