Nigeria’s headline inflation rate slowed to 21.88% in July 2025, a marginal decline from 22.22% recorded in June, according to the latest Consumer Price Index (CPI) report released by the National Bureau of Statistics (NBS). The moderation marks the lowest year-on-year inflation level since June 2024, offering tentative relief amid lingering cost pressures in the economy.
On a year-on-year basis, the July 2025 figure represents a sharp 11.52 percentage point drop from the 33.40% recorded in July 2024. The NBS attributed the significant annual decline partly to the statistical effect of the revised CPI base year (November 2009 = 100).
However, price pressures persisted on a monthly basis. Month-on-month inflation climbed to 1.99% in July, up 0.31 percentage points from 1.68% in June. This, the NBS explained, reflects a faster pace of increase in average price levels compared to the previous month.
The 12-month average CPI for the period ending July 2025 stood at 25.65%, down 5.11 percentage points from the 30.76% recorded in the corresponding period of 2024.
Urban and Rural Inflation Trends
Urban inflation eased to 22.01% in July 2025 from 35.77% a year earlier, while the monthly urban inflation rate dropped to 1.86% from 2.11% in June. The 12-month average for urban inflation fell to 27.04%, compared to 32.89% in July 2024.
In rural areas, inflation was recorded at 21.08% year-on-year, down from 31.26% in July 2024. However, rural inflation on a month-on-month basis surged to 2.30% from 0.63% in June, indicating sharper price increases in rural communities during the period. The rural 12-month average inflation rate stood at 23.84%, down from 28.86% a year earlier.
Food Inflation Remains Elevated Despite Drop in Annual Rate
Food inflation, a key driver of overall inflation, was 22.74% year-on-year in July, significantly lower than the 39.53% recorded in July 2024. The NBS noted that this sharp decline is largely due to the change in the base year rather than a broad-based easing in food prices.
On a month-on-month basis, food inflation moderated slightly to 3.12% from 3.25% in June. The slowdown was linked to price declines in vegetable oil, white beans, local rice, maize flour, sorghum, wheat flour, and millet. The 12-month average food inflation rate stood at 26.97%, down from 36.36% a year earlier.
Core Inflation Slows
Core inflation, which excludes volatile agricultural and energy prices, eased to 21.33% in July 2025 from 27.47% in July 2024. Month-on-month, the core inflation rate dropped sharply to 0.97% from 2.46% in June. The 12-month average core inflation rate was 23.63%, down from 24.65% in July 2024.
While the latest figures suggest some easing in annual inflation—partly due to the statistical base effect—monthly increases across most categories signal that underlying price pressures remain entrenched, posing continued challenges for households and policymakers.
