Inflation Eases To 18.8% In September Ahead Of CBN Meeting

Nigeria’s headline inflation rate is projected to ease to 18.8 per cent year-on-year in September from 20.1 recorded in August, offering potential relief to policymakers ahead of the Central Bank of Nigeria’s (CBN) next monetary policy meeting in November.

Analysts attribute the expected moderation to softer food prices and a strengthening naira, which have helped to temper price pressures across key consumer segments.

The anticipated slowdown, if confirmed by official data due on October 15, could strengthen the case for a further rate cut by the CBN to stimulate economic growth after months of tight monetary conditions.

A sustained decline in inflation would provide breathing space for households and businesses struggling with high costs and could bolster investor confidence in the economy.

Economists also believe that easing inflationary trends may enable the CBN to adopt a more accommodative policy stance, supporting credit expansion and domestic production.

Beyond Nigeria, global markets have been rattled by renewed trade tensions following former U.S. President Donald Trump’s announcement of a proposed 100 per cent tariff on Chinese goods starting November 1.

The post, shared on Trump’s Truth Social platform, erased nearly $2 trillion in U.S. market value last Friday as risk aversion swept across global equities.

The S&P 500 fell 2.7 per cent, its worst session since April, while Bitcoin slumped sharply and safe-haven gold surged to a record high above $4,070 per ounce.

Though Washington has since signalled openness to dialogue with Beijing, uncertainty over U.S.-China trade relations persists, adding to investor anxiety already heightened by the U.S. government shutdown that began on October 1.

Meanwhile, attention will turn to Federal Reserve Chair Jerome Powell, who is expected to speak at the National Association for Business Economics (NABE) annual meeting on Tuesday.

Market watchers say any policy clues from Powell could trigger outsized reactions given the lack of fresh U.S. economic data due to the shutdown.

In the commodities market, gold’s rally has extended for eight consecutive weeks, gaining nearly 55 per cent year-to-date amid mounting geopolitical and financial risks.

Analysts believe the precious metal could climb further toward $4,100 if the $4,050 level holds as a key support.

With inflation easing at home and global uncertainty clouding external markets, Nigeria’s economic managers may find renewed momentum to balance growth priorities with inflation control as 2025 approaches.