Nigeria’s headline inflation eased for the fifth consecutive month in August 2025, offering a welcome relief for consumers facing persistent high living costs.
The National Bureau of Statistics (NBS) reported on Monday that inflation slowed to 20.12 per cent in August, down from 21.88 per cent in July. This represents a 1.76 percentage point decline month-on-month and a sharp drop from 32.15 per cent recorded in August 2024.
The Consumer Price Index (CPI), which measures the average change in prices of goods and services, rose slightly to 126.8 points in August from 125.9 points in July. Month-on-month inflation slowed to 0.74 per cent, down from 1.99 per cent in July, signaling slower price increases across the country.
According to the NBS, “The Consumer Price Index rose to 126.8 in August 2025, reflecting a 0.9-point increase from the preceding month (125.9). In August 2025, the Headline inflation rate eased to 20.12 per cent relative to the July 2025 headline inflation rate of 21.88 per cent. The August 2025 Headline inflation rate showed a decrease of 1.76 per cent compared to the July 2025 Headline inflation rate.”
Inflationary pressures remain uneven across Nigeria. Urban inflation eased to 19.75 per cent year-on-year in August, down sharply from 34.58 per cent a year earlier. Rural inflation was slightly higher at 20.28 per cent, compared with 29.95 per cent in August 2024. On a monthly basis, urban areas recorded 0.49 per cent inflation, down from 1.86 per cent in July, while rural areas posted 1.38 per cent, lower than 2.30 per cent in July.
Experts note that inflation remains sharper in rural communities due to transportation, distribution, and supply chain challenges, which continue to drive higher price growth than in urban centres.
Food inflation, the largest component of Nigeria’s inflation basket, also moderated in August but remained elevated. The index declined to 21.87 per cent year-on-year, from 37.52 per cent in August 2024, while month-on-month food inflation slowed to 1.65 per cent, compared with 3.12 per cent in July. The moderation was largely driven by falling prices of staples including rice, guinea corn flour, maize flour, millet, semolina, and soya milk.
The twelve-month average for food inflation now stands at 25.75 per cent, down from 36.99 per cent a year ago, reflecting a gradual easing of pressures on households.
Analysts say the figures highlight a gradual stabilization of the economy, though sustained efforts are needed to ensure affordability and access to essential goods, particularly in rural regions where inflation continues to bite hardest.
Reported by: Stone Reporters News
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