CPPE: Continued Easing of Core Inflation Reflects Positive Impact of Exchange Rate Stability

Dike Onwuamaeze 

The Centre for the Promotion of Private Enterprise (CPPE), has described the continued easing of core inflation as a reflection of the positive impact of exchange-rate stability and improved macroeconomic conditions in moderating imported inflation and broader non-food price pressures.

The CPPE stated this in its policy brief on June’s inflation report that was released on Wednesday by the Nigeria Bureau of Statistics (NBS), which showed that headline inflation eased marginally from 15.93 per cent in May to 15.91per cent in June, while month-on-month inflation moderated from 1.75 per cent to 1.66 per cent. 

Commenting on the report, the Chief Executive Officer of CPPE Dr. Muda Yusuf, said that these changes are indications that headline inflation has largely plateaued.

Yusuf said: “The continued easing of core inflation is, however, encouraging. It reflects the positive impact of exchange-rate stability and improved macroeconomic conditions in moderating imported inflation and broader non-food price pressures.”

He said that the June inflation data do not warrant further monetary tightening as headline inflation has largely stabilised; core inflation has continued to moderate and the principal drivers of inflation remain structural rather than demand-induced.

“Accordingly, the CPPE expects the Monetary Policy Committee to maintain the current monetary policy stance at its next meeting. The immediate policy priority should be for the monetary authorities to collaborate with the fiscal authorities to accelerate structural reforms that expand food supply, improve logistics, reduce energy and production costs, reduce debt service costs, strengthen domestic value chains and enhance productivity. These measures offer the most sustainable path to lower inflation, stronger growth and improved living standards,” Yusuf said.

He also said that the June 2026 inflation report pointed to a broad stabilisation of headline inflation and revealed a renewed escalation of food prices, adding that while macroeconomic stability is gradually being consolidated, structural inflationary pressures within the real economy remain pronounced.