Onome Amuge
Nigeria’s headline inflation rate eased to 21.88 per cent in July 2025, a decrease from the 22.22 per cent recorded in June, according to the latest figures released by the National Bureau of Statistics (NBS).
The decrease of 0.34 percentage points from the previous month’s rate reflects a slight moderation in the cost of goods and services across key sectors. However, the analysis is complicated by a change in the statistical base year used for calculating the figures. The NBS noted that the headline rate for July 2025 was 11.52 percentage points lower than the 33.40 per cent recorded in July 2024, a significant drop that is technically influenced by the shift in the base year.
The food inflation rate, a key component of the overall inflation figure, also saw a moderation. On a year-on-year basis, the rate was 22.74 per cent in July 2025, a substantial decrease of 16.79 percentage points compared to the 39.53 per cent rate recorded in July 2024. The NBS attributed this decline to lower average prices for key staples, including vegetable oil, beans, local rice, maize, and wheat.
On a month-on-month basis, the food inflation rate also eased slightly, falling to 3.12 per cent in July from 3.25 per cent in June. This marginal slowdown suggests that the short-term price pressures on food, while still high, are beginning to abate. However, despite this positive signal, food and non-alcoholic beverages continue to be the largest contributors to the overall Consumer Price Index (CPI), underscoring the ongoing challenge of making staple foods affordable for the average Nigerian household.
While the month-on-month headline inflation rate showed a slight increase to 1.99 per cent in July from 1.68 per cent in June, the overall trend suggests that inflationary pressures may be cooling, albeit slowly.
