Nigeria’s inflation rate declined for the fifth consecutive time to 21.12 percent in August, down from 21.88 percent in July 2025 amid a drop in food prices.
Data provided by the National Bureau of Statistics(NBS) on Monday revealed that inflation declined to 20.12%, down from 21.88 % in July.
The number is a steep drop from the 32.15 percent reported in August 2024 and a 1.76 percentage point drop month over month.
The Consumer Price Index, which measures the typical shift in prices for goods and services, increased slightly from 125.9 points in July to 126.8 points in August.
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.”
Inflationary pressures continue to be unequal, according to the NBS statistics office. While rural price surge was marginally higher at 20.28 percent compared to 29.95 percent in August 2024, urban inflation decreased to 19.75 percent year-over-year in August from 34.58 percent a year earlier.
On a monthly basis, rural price surge dropped from 2.30 percent to 1.38 percent, while urban inflation slowed to 0.49 percent from 1.86 percent in July.
The statistics highlighted how price surge has a more pronounced effect in rural areas, as supply chain, transportation, and distribution issues continue to fuel faster price increases than in cities.
Additionally, food inflation, which remains the strongest driver of Nigeria’s inflation basket, also moderated in August but stayed elevated.
Falling prices for basics like rice, millet, semolina, soy milk, guinea corn flour and maize flour were associated with the moderation.
The 12-month average for food hike was 25.75 percent, which was less than the 36.99 percent that was recorded the previous year.
However, food costs are still high despite the improvement, particularly in the northern states where supply networks are still being disrupted by insecurity and logistical obstacles.
According to the reports, o a monthly basis, price hike was fastest in Yobe at 9.20 per cent, Katsina at 8.59 per cent, and Sokoto at 6.57 per cent, while Enugu at –5.32 per cent, Taraba at –3.64 per cent, and Nasarawa at –3.56 per cent saw declines.
The announcement slowdown comes only few days before the Central Bank of Nigeria’s Monetary Policy Committee meeting scheduled for September 22 and 23, 2025.
The committee is anticipated to discuss whether to keep the present benchmark interest rate of 27.5% or modify it.
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