Inflation.webp
The Digest:

Nigeria’s headline inflation rate has declined for the fifth month in a row, dropping to 21.12% in August 2025, down from 21.88% in July, according to the latest data from the National Bureau of Statistics (NBS). The continued slowdown, driven by falling food prices, offers a sign of cautious optimism for households and policymakers.

Key Points:
  • Inflation eased to 21.12% in August, down from 32.15% in the same month last year.
  • Month-on-month inflation also decreased by 0.74%, reflecting sustained deceleration.
  • Food inflation, a critical component, showed moderation every month.
  • The trend may influence the Central Bank’s upcoming Monetary Policy Committee decisions.
  • The CBN could consider holding or cutting the current benchmark interest rate of 27.50%.
  • This marks the longest consistent decline in inflation since the recent economic crisis began.
  • The data suggests recent fiscal and monetary measures may be yielding gradual results.
While still high, the persistent drop in inflation provides a tangible signal that economic pressures may be beginning to ease for millions of Nigerians.

Sources: National Bureau of Statistics (NBS)