Nigeria’s annual inflation rate unexpectedly eased in August, a surprising phenomenon that is only possible in run up to general elections as high prices of commodities, especially food items dominate election campaigns.

Weaker inflation rate thus strengthens the case for the Central Bank of Nigeria (CBN) to resume monetary policy easing at its next meeting.

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Consumer prices rose 15.39% year-on-year in August, down marginally from 15.43% in July, according to data released by the National Bureau of Statistics (NBS) on Tuesday.

The figure came below the 15.7% median estimate of three economists surveyed by Bloomberg, indicating that inflationary pressures moderated more than analysts had anticipated.

On a month-on-month basis, the slowdown was more pronounced. Consumer prices increased by 0.7% in August, compared with a 1.6% increase in July.

The weaker monthly inflation reading could provide policymakers with greater room to continue the easing cycle, as the slower pace of price increases suggests a moderation in underlying inflationary pressures.