Nigeria’s inflation drops for 5th consecutive time – NBS

Nigeria’s headline inflation slowed for the fifth consecutive month in August 2025, providing some respite for consumers grappling with high living costs.

Data released by the National Bureau of Statistics on Monday showed that inflation dropped to 20.12 per cent, down from 21.88 per cent in July.

The figure represents a 1.76 percentage point decline on a month-on-month basis and a sharp fall from the 32.15 per cent recorded in August 2024.

The Consumer Price Index, which tracks the average change in prices of goods and services, inched up to 126.8 points in August from 125.9 points in July.

Month-on-month inflation stood at 0.74 per cent, lower than 1.99 per cent in July, pointing to slower price increases across the country.

The report read, “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.

“Looking at the movement, the August 2025 Headline inflation rate showed a decrease of 1.76 per cent compared to the July 2025 Headline inflation rate.”

The statistics office noted that inflationary pressures remain uneven. Urban inflation eased to 19.75 per cent year-on-year in August from 34.58 per cent a year earlier, while rural inflation was slightly higher at 20.28 per cent compared with 29.95 per cent in August 2024.

On a monthly basis, inflation in urban areas slowed to 0.49 per cent from 1.86 per cent in July, while rural inflation came in at 1.38 per cent, down from 2.30 per cent.

The figures underline the sharper impact of inflation in rural communities, where transportation, distribution, and supply chain challenges continue to drive higher price growth than in urban centres.

Food inflation, which remains the strongest driver of Nigeria’s inflation basket, also moderated in August but stayed elevated.

The index declined to 21.87 per cent year-on-year from 37.52 per cent in August 2024. On a month-on-month basis, food inflation slowed to 1.65 per cent, compared with 3.12 per cent in July

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