Nigeria’s inflation rate has eased for the fifth consecutive month, reaching 20.12% in August 2025, down from 21.88% in July.
This decline offers some relief to consumers struggling with the high cost of living.
The year-on-year inflation rate dropped significantly from 32.15% in August 2024, with food inflation decreasing to 21.87% from 37.52% in the same period last year.
Although inflationary pressures remain uneven, with rural areas experiencing higher price growth due to transportation and supply chain challenges, the slowdown in food prices, particularly staples like rice and maize flour, has contributed to the overall decline.
Core inflation, excluding agricultural products and energy, stood at 20.33% year-on-year but rose monthly to 1.43% from 0.97% in July, indicating persistent structural pressures.
The inflation trends varied across states, with Ekiti, Kano, and Oyo recording the highest year-on-year headline inflation rates. With the Central Bank of Nigeria’s Monetary Policy Committee meeting approaching, the persistence of food and core inflation may lead to cautious decision-making regarding interest rates.
About The Author
