Nigeria’s headline inflation rate has eased for the fourth consecutive month, dropping to 21.88% in July 2025 from 22.22% in June, according to the National Bureau of Statistics (NBS). This decrease of 0.34 percentage points marks a significant slowdown in the annual rate. The NBS report also noted that the July rate is 11.52 percentage points below the 33.40% recorded in July 2024.
Despite the slowdown in the annual rate, prices continued to rise in the short term. The month-on-month inflation rate climbed to 1.99% in July from 1.68% in June, indicating sustained price pressures. Food inflation stood at 22.74% year-on-year in July, compared to 39.53% in the same month last year. On a monthly basis, food prices rose by 3.12%, slightly below the 3.25% recorded in June. The moderation was driven by slower price increases in essential commodities like vegetable oil, local rice, and wheat flour.
The NBS report also highlighted the difference in inflation rates between urban and rural areas. Urban inflation was 22.01% year-on-year, while the rural rate was 21.08%. However, rural areas experienced sharper price increases on a monthly basis at 2.30%, compared to 1.86% in urban areas. This disparity underscores the varying economic challenges faced by different regions in Nigeria.
Core inflation, which excludes volatile agricultural items and energy, slowed to 21.33% in July from 27.47% a year earlier. Month-on-month, it fell to 0.97% from 2.46% in June, reflecting easing price pressures in non-food categories. At the state level, Borno, Niger, and Benue recorded the highest annual headline inflation rates at 34.52%, 27.18%, and 25.73%, respectively. In contrast, Yobe, Zamfara, and Katsina posted the lowest rates at 11.43%, 12.75%, and 15.64%, respectively.
Although the data confirms that headline inflation has continued to moderate on an annual basis, the persistent monthly increases underline the reality that the cost of living remains elevated for many Nigerians. As the economy continues to face challenges, policymakers will need to address the underlying drivers of inflation to ensure sustainable economic growth and improved living standards for citizens.
