The Central Bank of Nigeria has indicated that the reduction in the nation’s inflation rate in July is a favorable indication that its monetary policies are starting to produce positive outcomes.

The CBN emphasized this development as proof of the success of its strategies designed to stabilize the economy and manage inflationary pressures. Sidi Hakama, a spokesperson for the apex bank, made this announcement in a statement on Tuesday.

It is important to note that the latest inflation figures released by the National Bureau of Statistics on Thursday revealed a decrease in Nigeria’s inflation rate to 33.40 percent in July, down from 34.19 percent in the preceding month.

In response to this report, the CBN underscored that its interest rate tightening measure, which was set at 26.75 percent in July, is effectively addressing inflation.

“Recent data from the National Bureau of Statistics (NBS) has shown that Nigeria’s year-on-year headline inflation rate has decreased in July 2024 for the first time in 19 months, clearly indicating that the CBN’s monetary policy tightening measures are yielding results,” the CBN stated.

Furthermore, the CBN noted that its policies will aid in achieving its overarching goal of maintaining stability in the foreign exchange market.

“The Bank will persist in monitoring market conditions and will adjust policies as needed to facilitate increased remittance flows into Nigeria,” the CBN added.