{"id":16480,"date":"2025-08-17T17:22:16","date_gmt":"2025-08-17T17:22:16","guid":{"rendered":"https:\/\/thenewsnow.org\/?p=16480"},"modified":"2025-08-17T17:24:48","modified_gmt":"2025-08-17T17:24:48","slug":"cppe-comments-on-july-2025-inflation-report","status":"publish","type":"post","link":"https:\/\/thenewsnow.org\/index.php\/2025\/08\/17\/cppe-comments-on-july-2025-inflation-report\/","title":{"rendered":"CPPE COMMENTS ON JULY 2025 INFLATION REPORT"},"content":{"rendered":"

The July 202<\/span><\/span>5<\/span><\/span> inflation figures present a mixed outlook for the Nigerian economy, with notable improvements in some key indicators but lingering risks that demand policy attention.<\/span><\/span><\/p>\n

Positive Trends<\/span><\/span>
\n<\/span><\/span>Headline inflation declined for the f<\/span><\/span>ourth <\/span><\/span>consecutive month, easing from <\/span><\/span>22.22% in June to 21.88% in July<\/span><\/span>, a deceleration of 0.34%. Month-on-month food inflation also moderated, falling from <\/span><\/span>3.25% in June to 3.12% in July<\/span><\/span>, while core inflation posted marginal declines year-on-year (-0.03%) and a sharp slowdown month-on-month, from <\/span><\/span>3.46% to 0.97%<\/span><\/span>.<\/span><\/span><\/p>\n

These developments reflect a gradually stabilizing macroeconomic environment, supported by exchange rate stability, improved investor confidence, and the lingering impact of import duty waivers on key staples such as rice, maize, and sorghum. The <\/span><\/span>base effect<\/span><\/span>, given the high inflationary conditions in 2022, has also been a strong factor in the recent downward trend.<\/span><\/span><\/p>\n

Emerging Concerns<\/span><\/span>
\n<\/span><\/span>Despite these gains, pressures persist. Month-on-month headline inflation rose from <\/span><\/span>1.68% in June to 1.99% in July<\/span><\/span>, while year-on-year food inflation inched up from <\/span><\/span>21.97% to 22.74%<\/span><\/span>. These movements underscore the continuing vulnerability of the economy to supply-side shocks.<\/span><\/span><\/p>\n

Policy Implications<\/span><\/span>
\n<\/span><\/span>The outlook calls for caution and sustained reforms. Key priorities include:<\/span><\/span><\/p>\n

1. Foreign exchange stability<\/span><\/span> \u2013 maintaining calm in the FX market to anchor inflation expectations.<\/span><\/span><\/div>\n
2. Structural reforms<\/span><\/span> \u2013 addressing constraints such as high logistics and import costs, insecurity, climate risks, and port inefficiencies that elevate costs and sustain inflation.<\/span><\/span><\/div>\n
3. Fiscal discipline<\/span><\/span> \u2013 ensuring prudent government spending and managing liquidity injections effectively to prevent fueling inflationary pressures.<\/span><\/span><\/div>\n
4. Monetary innovation<\/span><\/span> \u2013 moving beyond conventional tightening tools (CRR, <\/span><\/span>M<\/span><\/span>PR) toward more creative measures to manage<\/span><\/span> liquidity in the economy<\/span><\/span>, given that <\/span><\/span>the lending rate in the economy had risen above 30% for most businesses. <\/span><\/span><\/div>\n

Conclusion<\/span><\/span>
\n<\/span><\/span>The July 202<\/span><\/span>5<\/span><\/span> inflation report provides <\/span><\/span>a basis for <\/span><\/span>cautious optimism. While progress has been made in moderating headline and core inflation, the persistence of food and month-on-month price increases highlights unresolved structural weaknesses. A coordinated mix of <\/span><\/span>monetary, fiscal, and structural interventions<\/span><\/span> will be required to consolidate recent gains and steer the economy toward sustained stability.<\/span><\/span><\/p>\n

DR MUDA YUSUF<\/span><\/span><\/p>\n

DIRECTOR\/CEO<\/span><\/span><\/p>\n

CENTRE FOR THE PROMOTION OF PRIVATE ENTERPRISE<\/span><\/span> [CPPE]<\/span><\/span><\/p>\n

17<\/span><\/span>TH<\/span><\/span> AUGUST 2025<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The July 2025 inflation figures present a mixed outlook for the Nigerian economy, with notable improvements in some key indicators<\/p>\n","protected":false},"author":1,"featured_media":16482,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"footnotes":""},"categories":[11],"tags":[],"class_list":["post-16480","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-from-the-grassroots"],"_links":{"self":[{"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/posts\/16480","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/comments?post=16480"}],"version-history":[{"count":2,"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/posts\/16480\/revisions"}],"predecessor-version":[{"id":16483,"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/posts\/16480\/revisions\/16483"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/media\/16482"}],"wp:attachment":[{"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/media?parent=16480"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/categories?post=16480"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/tags?post=16480"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}