By Taiwo Scholastica
The Chief Executive Officer of Economic Associates, Dr. Ayo Teriba, has said the Central Bank of Nigeria is unlikely to reduce interest rates at its next Monetary Policy Committee (MPC) meeting despite the slight decline in the country’s headline inflation.
Teriba made the remark during a live television interview on Friday while analyzing the latest Consumer Price Index released by the National Bureau of Statistics.
The report showed that headline inflation eased slightly to 15.91 percent in June from 15.93 percent in May, ending a three-month stretch of rising inflation.
While describing the development as a positive sign, Teriba said the continued increase in food inflation means the apex bank is expected to remain cautious in its policy decisions.
He explained that although the decline in headline inflation is a positive signal, the underlying pressure from food inflation means policymakers are likely to hold interest rates steady rather than rush to cut them.
According to the economist, the moderation in headline inflation reflects the impact of tighter monetary policy and greater exchange rate stability.
However, he stressed that these gains alone are not enough to ease the burden on consumers.
He stated that while the numbers point to improving macroeconomic stability, genuine relief for Nigerians will only come when fiscal reforms address the agricultural supply chain and reduce the cost of moving food across the country.
He added that structural challenges, including insecurity in farming communities, poor transport infrastructure, and high logistics costs, continue to fuel food inflation and must be addressed to achieve sustainable price stability.
Teriba concluded that stronger coordination between monetary and fiscal authorities would be necessary to keep inflation on a downward path and improve living conditions.
He expressed optimism that the economy is showing signs of improvement but maintained that meaningful reductions in the cost of living would depend on reforms that boost agricultural production, strengthen supply chains, and improve the movement of goods across the country