Nigeria’s inflation rate has dropped for the seventh consecutive month, hitting 16.05% in October 2025, the lowest level recorded since 2017. This was revealed in the latest Consumer Price Index (CPI) report released on Monday by the National Bureau of Statistics (NBS).
The new figure marks a significant improvement from the 18.02% inflation rate posted in September 2025, signaling a steady slowdown in price pressures that have plagued the economy for years.
According to the NBS, “In October 2025, the Headline inflation rate eased to 16.05% relative to the September 2025 headline inflation rate of 18.02%. This represents a 1.96% decrease month-on-month.”
On a year-on-year basis, the bureau noted a sharper contrast. The October 2025 inflation rate is 17.82 percentage points lower than the 33.88% recorded in the same month last year. “This shows that the Headline inflation rate decreased compared to the same month in the preceding year,” the report stated.
Food Prices Ease
Food inflation, which has been a major driver of overall inflation, also slowed for the second month in a row, dropping to 13.2% from 16.9% in September. Analysts attribute the decline to stronger agricultural output and a relatively stable naira, which has helped reduce import-related costs.
Policy Implications
The sustained disinflation trend may offer relief for monetary authorities. In September, the Central Bank of Nigeria (CBN) cut interest rates by 50 basis points to 27%. With inflation showing signs of moderation, experts believe the Monetary Policy Committee (MPC) could consider further easing when it convenes on November 24–25.
“This downward trajectory in inflation strengthens the CBN’s inflation-targeting strategy and provides a window for additional policy flexibility,” said an analyst at Afrivest Securities.
If maintained, the falling inflation could ease pressure on households, improve investor confidence, and support broader economic recovery efforts across sectors.
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