Inflation drops in June after rate hikes

Nigeria’s headline inflation dropped to 10.2 per cent year-on-year in June from its 12.4 per cent in May National Bureau of Statistics said in Abuja. The Central Bank monetary tightening policy helped to curb a rise in prices. Growth in food prices fell to 9.2 per cent in June from 12.2 per cent in May.
The CBN Monetary Policy Committee (MPC) will meet next week, after raising interest rates at its last three consecutive meetings. The MPC raised its benchmark rate to 8 per cent in May. Despite the dip in inflation the MPC will be aware of the future impact of increased liquidity flows after the federation account allocation committee distributed N1.3 trillion to the three tiers of government in June, more than double the previous month. The increase was due to the distribution of arrears from January to April this year