CBN Governor, Yemi Cardoso
Central Bank of Nigeria (CBN) Governor, Mr. Yemi Cardoso, attributed the reduction in June’s headline inflation to stabilized energy prices and a steady foreign exchange market.
Speaking in Abuja on Tuesday during the presentation of the 301st Monetary Policy Committee (MPC) communiqué, he highlighted key factors influencing the economy.
Cardoso noted a slight rise in month-on-month headline inflation, indicating persistent underlying price pressures.
He warned that global uncertainties, including tariff disputes and geopolitical tensions, could disrupt supply chains and increase prices of imported goods.
“Members also noted the continued stability in the banking system, evidenced by the stable Financial Soundness Indicators (FSIs), which would further be supported by the ongoing banking recapitalisation exercise,” he said, adding that eight banks have met recapitalization requirements, with others progressing toward the deadline.
He urged the CBN to maintain robust oversight to ensure the banking system’s resilience and stability. On domestic price trends, Cardoso reported that year-on-year headline inflation fell to 22.22% in June from 22.97% in May, driven by lower prices for cooking gas, wood charcoal, and diesel. However, food inflation rose to 21.97% from 21.14%, primarily due to higher processed food costs. “Core inflation, that is, all items less farm produce and energy, also increased to 22.76 per cent in June from 22.28 per cent in May,” he stated, citing rises in costs for information and communication, housing, utilities, and personal care services.
Month-on-month, headline inflation increased to 1.68% from 1.53%, driven by higher service and imported food prices. Cardoso commended the Federal Government’s efforts to enhance security, which have supported food production, and urged continued provision of high-yield seedlings, fertilizers, and other farming inputs for the current season.
The News Agency of Nigeria (NAN) reports that the MPC retained the Monetary Policy Rate (MPR) at 27.5%, with all 12 members unanimously agreeing to maintain key monetary parameters.
The committee also kept the Cash Reserve Ratio (CRR) at 50% for deposit money banks and 16% for merchant banks, the liquidity ratio at 30%, and the Asymmetric Corridor at +500/-100 basis points. (NAN)
