By Jemimah Wellington, JKNewsMedia Correspondent
HEADLINE INFLATION slowed in June as energy prices dipped and foreign exchange rates steadied, according to the Central Bank of Nigeria (CBN).
The bank’s governor, Yemi Cardoso, announced the development on Tuesday while presenting the communiqué from the Monetary Policy Committee’s (MPC) 301st meeting in Abuja.
The year-on-year inflation rate dropped to 22.22percent in June from 22.97 per cent in May. Cardoso attributed the decline to reduced costs of diesel, cooking gas, and wood charcoal.
However, he noted a rise in month-on-month inflation from 1.53 per cent to 1.68 per cent, citing persistent price pressures driven by services and imported food.
Food inflation continued its upward trend, rising to 21.97 per cent in June from 21.14 per cent in May, primarily due to increased costs of processed food.
Core inflation, excluding farm produce and energy, also inched up to 22.76 per cent from 22.28 per cent, reflecting cost increases in ICT, housing, utilities, and personal care services.
The CBN warned that ongoing global disruptions – fuelled by tariff conflicts and geopolitical tensions – could intensify pressure on imported goods, worsening domestic inflation risks.
On the state of the financial sector, the committee reported sustained stability, with Financial Soundness Indicators (FSIs) remaining strong. Cardoso confirmed that eight banks had fully met the recapitalisation thresholds, while others are advancing toward compliance.
He reiterated that the apex bank would maintain strict oversight to ensure resilience and confidence in the banking system.
The MPC maintained its hawkish stance by holding the Monetary Policy Rate (MPR) at 27.5 per cent. It also kept the Cash Reserve Ratio (CRR) at 50 per cent for deposit money banks and 16 per cent for merchant banks.
The liquidity ratio remains at 30 per cent, with the Asymmetric Corridor unchanged at +500/-100 basis points.
Committee members acknowledged federal efforts to boost security and its effect on food production, while urging continued support for farmers through timely access to fertilisers, high-yield seedlings, and other critical inputs for the current planting season.
