Inflation Falls as Forex Stabilizes and Food Supply Improves

Prices of goods and services across Nigeria have continued to ease, supported by relative stability in the foreign exchange market, improved food supply, and better logistics, according to recent market assessments.

Ahead of the National Bureau of Statistics’ (NBS) Consumer Price Index (CPI) release on Monday, independent surveys and econometric projections indicated that inflationary pressures further weakened in November. Headline inflation reportedly fell by over 100 basis points, marking the eighth consecutive month of decline to around 14.00% in November, down from 16.50% in October and 18.02% in September. The downward trend began in April, when inflation dropped from 24.23% in March to 23.71%, before easing steadily to October’s level.

SCM Capital attributed the slowdown to forex stability, noting that reduced currency volatility has helped contain costs from imported goods. The firm highlighted that the reopening of borders, lower input costs, and improved domestic supply have eased pressures on both food and non-food items.

Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), urged policymakers to implement a coordinated mix of monetary, fiscal, and structural reforms to sustain disinflation and translate it into tangible improvements in living standards.

He emphasized that the impact would be more meaningful if prices of essential items such as food, energy, transport, education, and healthcare continue to fall. Yusuf recommended indirect subsidies for basic utilities, increased government investment in mass transit, and support for agriculture to lower food costs. He also called on state and local governments to complement federal efforts by subsidizing transportation, education, and health to ensure that macroeconomic gains benefit ordinary Nigerians.

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