Nigeria’s Inflation Drops to 20.12% in August 2025 as Food Prices Ease – NBS Report

Nigeria’s headline inflation slowed for the fifth consecutive month in August 2025, dropping to 20.12% from 21.88% in July, according to the latest data released by the National Bureau of Statistics (NBS) on Monday. This decline marks a key milestone for the country’s economy as rising consumer prices have long squeezed household incomes and business margins.

On a month-to-month basis, inflation moderated to 0.74% in August, reflecting a steadier pace of price increases compared to previous months. The NBS explained that while prices continue to rise, the rate of increase in August was slower than in July, offering relief to consumers and policymakers alike.

Breaking down the figures, urban inflation fell to 19.75% year-on-year, a sharp drop from 34.58% in August 2024. Rural inflation also eased to 20.28%, compared with 29.95% a year earlier. On a monthly basis, urban inflation was 0.49%, while rural inflation slowed to 1.38%, showing a general cooling across both segments.

Food inflation, which has been a major driver of overall price pressures, eased significantly to 21.87% year-on-year in August 2025, down from 37.52% in August 2024. The NBS attributed the slowdown to falling average prices of staples such as rice (imported and local), guinea corn flour, maize flour, millet, semolina and soy milk. On a monthly basis, food inflation stood at 1.65%, compared to 3.12% in July.

Core inflation, which strips out volatile agricultural and energy prices, was recorded at 20.33% in August 2025, down from 27.58% in the same period last year. Meanwhile, Central Bank Governor Olayemi Cardoso signaled at the Eurocham Nigeria C-Level Forum in Lagos that interest rates, currently between 32% and 36% on commercial loans, could see downward pressure as inflation eases and capital allocation improves.

source: nairametrics