ABUJA (Reuters) -Nigeria’s headline inflation rate eased for a fifth straight month in August, helped by a slowdown in food inflation, official data showed on Monday.
The decline to 20.12% year on year from 21.88% in July could bolster the case for the Central Bank of Nigeria to start cutting interest rates at a monetary policy meeting next week.
Inflation has been on a downtrend trajectory this year after the statistics office revised its base year and adjusted the weight of items in its price index.
Food inflation, a key driver of the headline rate, stood at 21.87% year on year in August compared with 22.74% the month before.
The central bank held its benchmark lending rate at 27.50% in July.
But some analysts said at the time they thought an easing cycle could start in September given relative stability in the naira currency and the fact that further disinflation was expected.
This month the naira has gained on the official market, which should mean inflation continues to fall in the months ahead.
(Reporting by Chijioke Ohuocha and Shamsuddin Md;Editing by Alexander Winning)
