Nigeria’s headline inflation slowed for the fifth consecutive month in August 2025, giving consumers slight relief from high living costs.
The National Bureau of Statistics (NBS) reported on Monday that inflation fell to 20.12%, down from 21.88% in July and far below the 32.15% recorded a year earlier. Month-on-month inflation cooled to 0.74% from 1.99% in July, indicating slower price increases across the country.
Key Drivers and Trends
- Food Inflation: Dropped to 21.87% year-on-year, with staples such as rice, maize flour, and millet showing price declines.
- Core Inflation: Eased to 20.33% year-on-year but rose slightly month-on-month to 1.43%, reflecting higher costs in housing, utilities, transportation, education, and healthcare.
- Urban vs Rural: Urban inflation stood at 19.75%, while rural areas recorded 20.28%, underscoring supply-chain challenges in rural communities.
State-by-State Snapshot
- Highest annual inflation: Ekiti (28.17%), Kano (27.27%), Oyo (26.58%)
- Lowest annual inflation: Zamfara (11.82%), Anambra (14.16%), Enugu (14.20%)
- Highest food inflation: Borno (36.67%), Kano (30.44%), Akwa Ibom (29.85%)
Policy Outlook
The data arrives ahead of the Central Bank of Nigeria’s Monetary Policy Committee meeting on Sept. 22–23, where members will debate the current 27.5% benchmark interest rate. Economists say the sustained disinflation gives the CBN some flexibility, but persistent food and core inflation may keep policymakers cautious.
