{"id":67469,"date":"2025-09-16T11:43:09","date_gmt":"2025-09-16T11:43:09","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/67469\/"},"modified":"2025-09-16T11:43:09","modified_gmt":"2025-09-16T11:43:09","slug":"august-inflation-dip-fuels-calls-for-cbn-rate-cuts","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/67469\/","title":{"rendered":"August inflation dip fuels calls for CBN rate cuts"},"content":{"rendered":"

Nigeria\u2019s latest inflation report, showing continued deceleration, has sparked mixed reactions across the country, with economic experts welcoming the development while citizens on social media questioned its impact on everyday living.<\/p>\n

Dr. Muda Yusuf,<\/strong> Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), described the trend as a positive sign of increasing economic stability.<\/p>\n

Speaking in an interview with Nairametrics, Yusuf noted that the consistent slowdown in inflation signals that the economy is gradually adjusting to the government\u2019s reform measures.<\/p>\n

\u201cMy immediate reaction is that it\u2019s a very good development. We are seeing a very good change of consistent deceleration inflation. It\u2019s also an indication of increasing stability in the economy. It\u2019s a reflection of the fact that the macroeconomic environment is getting better. That\u2019s a reflection of the fact that the economy and investors generally have fully adjusted to the realities of the reforms,\u201d Yusuf stated.<\/p>\n

However, he cautioned that declining inflation does not automatically translate to lower living costs.<\/p>\n

\u201cReduction in inflation is not the same thing as a reduction in price. What we need are specific, targeted policies to deal with the issue of the cost of living, and this will involve a combination of policies \u2013 fiscal, monetary, investment, trade, tariffs, activities, all these policies.\u201d\u00a0<\/p>\n

Experts call for reduction in MPR\u00a0<\/strong><\/p>\n

On monetary policy, Yusuf argued that it was time for the Central Bank of Nigeria (CBN) to review its tightening stance.<\/p>\n

\u201cI agree with the position that the Monetary Policy Rate (MPR) should be reduced because monetary policy is extremely tight at the moment. Investors are still grappling with high costs of borrowing, and easing interest rates would help boost production and investment.\u201d\u00a0<\/p>\n

Dr. Ango Malari,<\/strong> an economic analyst at the Society for Peacebuilding and Economic Advancement, expressed concerns over the high rate of food inflation. He also echoed the sentiments that MPR should be reduced to \u201cstimulate investor confidence.\u201d<\/p>\n

Lead Analyst at Nairametrics, Idika Aja<\/strong>, expressed relief at the drop in inflation rate but cautioned that many Nigerians still experience hardship.<\/p>\n

\u201cYes, the rise in the inflation rate is slower than before; however, most Nigerians still struggle to survive. Even if prices are not rising as fast as they were, they are still high and out of the reach of many Nigerians. Their purchasing power is decimated, and it will only take higher wages to get them to afford things.\u201d\u00a0<\/p>\n

Nigerians React<\/strong><\/p>\n

While economists emphasized policy adjustments, many Nigerians on social media reacted with skepticism and anger.<\/p>\n

Williams (@willie_fied) said on X,\u00a0 \u201cYou will soon cook this thing to 1% while Nigerians are dying of hunger. Your Master rightly asked, \u2018\u201dna statistics we go chop?\u201d INEC, Judiciary, every institution is fabricating things to make Amoda look good, but we know the reality on the streets. Continue cooking.\u201d<\/p>\n

\n

You will soon cook this thing to 1% while Nigerians are dying of hunger. Your Master rightly asked, ” na statistics we go chop?” INEC, Judiciary, every institution is fabricating things to make Amoda look good, but we know the reality on the streets. Continue cooking \u270c\ufe0f<\/p>\n

\u2014 Williams (@willie_fied) September 15, 2025<\/a><\/p>\n<\/blockquote>\n

Sam drew (@Samdrew27881981) said, \u201cThat\u2019s the plan. The oga already said\u00a0 he wants 5% and that\u2019s what they are working towards. By December 2026, they will get there in preparation for the 2027 election. Nna campaign material. Same way Nigeria has less unemployment than developed economies, interesting times\u201d<\/p>\n

\n

That’s the plan. The oga already said he wants 5% and that’s what they are working towards. By December 2026,they will get there in preparation for 2027 election. Nna campaign material. Same way Nigeria has less unemployment than developed economies, interesting times<\/p>\n

\u2014 Sam drew (@Samdrew27881981) September 16, 2025<\/a><\/p>\n<\/blockquote>\n

Ogbonnaya Abraham (@kekedriver1990) wrote \u201c@NBS_Nigeria you people are collecting brown envelope from APC to give wrong statistics\u201d<\/p>\n

Atobajaye (@Atobajaye25) said, \u201cThis analyst is a scam. The CPI figures are wrong; the cost of living hasn\u2019t dropped a penny, yet they\u2019re claiming inflation has reduced. How come?\u201d<\/p>\n

\n

This analyst is a scam. The CPI figures are wrong, cost of living hasn\u2019t dropped a penny, yet they\u2019re claiming inflation has reduced. How come?\u201d<\/p>\n

\u2014 Atobajaye (@Atobajaye25) September 15, 2025<\/a><\/p>\n<\/blockquote>\n

Dr. Toks (@fimiletoks) wrote, \u201cSingle-digit inflation is achievable in Q3 2026, but I am afraid that pre-election spending will mess things up.\u201d<\/p>\n

\n

Single-digit inflation is achievable in Q3 2026 but I am afraid that pre-election spending will mess things up. https:\/\/t.co\/hhHLAKZ7xP<\/a><\/p>\n

\u2014 Dr. Toks \ud83e\udd87 ( An\u00edgil\u00e1j\u00e9 \u2013 El Mero Mero ) (@fimiletoks) September 15, 2025<\/a><\/p>\n<\/blockquote>\n

King YEM\ud83d\udc7dLALA (@yemolala02) wrote \u201cYes, inflation speed Cool off is happening, but the Food chain & Transportation system needs serious government intervention. The Ministries of Transportation and Agriculture aren\u2019t serious to tackle the problems.\u201d<\/p>\n

\n

Yes, inflation speed Cool off is happening.<\/p>\n

But the Food chain & Transportation system needs serious government intervention. The Ministries of Transportation and Agriculture aren’t serious to tackle the problems. https:\/\/t.co\/SiNdgSd18K<\/a><\/p>\n

\u2014 King YEM\ud83d\udc7dLALA || \ud83c\uddf3\ud83c\uddec (@yemolala02) September 15, 2025<\/a><\/p>\n<\/blockquote>\n

OPEOLUWA (@OpeBee) said, \u201cThis is great news, and frankly speaking, it was expected. Whatever is happening to the dollar rate and food prices should continue. We have 4 more months to go, can we reach our 15% target ?.\u00a0 Cardoso and his team have no reason not to reduce the interest rate.\u201d<\/p>\n

\n

This is great news and frankly speaking it was expected. Whatever is happening to dollar rate and food prices should continue.<\/p>\n

We have 4 more months to go, can we reach our 15% target ?.<\/p>\n

Cardoso and his team have no reason not to reduce interest rate. https:\/\/t.co\/OmjaiIj5ab<\/a><\/p>\n

\u2014 OPEOLUWA \ud83d\ude0e\ud83d\ude0e (@OpeBee) September 15, 2025<\/a><\/p>\n<\/blockquote>\n

What you should know<\/b><\/p>\n

Nigeria\u2019s headline inflation rate eased for the fifth consecutive month, dropping to 20.12% in August 2025 from 21.88% recorded in July 2025<\/a>.<\/p>\n