Nigeria’s annual inflation slipped to 18% in September, its lowest in three years, reflecting easing price pressures and bolstering expectations of further interest-rate reductions, Bloomberg reported.

The decline, from 20.1% in August, was stronger than economists’ median forecast of 19% in a Bloomberg survey. Prices rose 0.7% in the month, with food inflation falling sharply to 16.9% from 21.9%, while core price growth eased to 19.5% from 20.3%.

Analysts attribute the slowdown to a combination of higher crude oil output, stable foreign exchange conditions, and the onset of the harvest season, which reduced staple food prices. The stable naira has also helped temper overall inflationary pressures.

The easing trend follows last month’s 50 basis point cut in the benchmark rate to 27%, the first reduction in five years. The Monetary Policy Committee (MPC) is widely expected to review another cut when it meets on November 25, as disinflation continues and price pressures remain contained.

Governor Olayemi Cardoso noted that “lagged effects of previous rate hikes, continued stability in the foreign exchange market, and lower gasoline prices” should support further easing. The central bank will, however, monitor potential disruptions from a late-September oil strike and refinery output issues that have caused fuel shortages.