Nigeria’s inflation slowed for the first time in 19 months, offering some hope that successive rate hikes may finally be yielding some results. It will also be good news for Nigerians suffering the worst cost of living crisis in decades.

Data from the Nigerian Bureau of Statistics puts July’s headline inflation at 33.40%, down from 34.19% recorded in June. Food inflation also slowed to 39.53% from 40.87% in June 2024.

“The moderations we have been expecting for the longest time might start to happen through the end of the year,” said Samuel Onyenkanmi, an Analyst at Norreberger. 

Food and alcoholic beverages were the biggest contributors to inflation in July, while fuel and energy costs were a distant second.

A slowdown in inflation will offer some respite to its citizens who have borne the brunt of Tinubu’s reforms. Those citizens have staged protests demanding lower electricity tariffs and the reinstatement of fuel subsidies. In July, the government suspended taxes and import duties on food items like maize and wheat for 150 days, a move aimed at lowering the cost of food.

One analyst who predicted an increase in the inflation rate for July does not believe the inflation will moderate significantly by the end of the year. 

“There’s nothing to suggest that. Maybe stabilization in food inflation by October due to harvests, but it won’t do much to lead to a decrease in inflation,” said Basil Abia, CEO of data intelligence firm Veriv Africa. 

*This is a developing story