Nigeria’s headline inflation rate eased for the fifth consecutive month, dropping to 20.12% in August 2025 from 21.88% recorded in July 2025.
This is according to the latest figures released on Monday by the National Bureau of Statistics (NBS).
On a month-on-month basis, the headline inflation stood at 0.74% in August, reflecting a moderation compared to previous months.
This means, according to the NBS, that in August 2025, the rate of increase in the average price level was lower than the rate of increase in the average price level in July 2025.
“This shows that the Headline inflation rate (year-on-year basis) decreased in August 2025 compared to the same month in the preceding year (i.e., August 2024), though with a different base year, November 2009 = 100,” NBS stated.
The NBS stated that the percentage change in the average CPI for the twelve months ending August 2025 over the average for the previous twelve-month period was 24.66%, showing a 6.6% decrease compared to 31.26% recorded in August 2024.
Urban vs Rural inflation trends
According to the NBS report, in August 2025, the urban inflation rate was 19.75%, which was 14.83% points lower compared to the 34.58% recorded in August 2024. On a month-on-month basis, the Urban inflation rate was 0.49% in August 2025, down by 1.37% compared to July 2025, which was at 1.86 %.
The corresponding twelve-month average for the urban inflation rate was 25.81% in August 2025. This was 7.63% points lower compared to the 33.44% reported in August 2024.
On the other hand, the rural inflation rate in August 2025 was 20.28% on a year-on-year basis.
According to the NBS, this was 9.67% points lower compared to the 29.95% recorded in August 2024. On a month-on-month basis, the Rural inflation rate in August 2025 was 1.38%, down by 0.92% compared to July 2025, which was at 2.30%.
The corresponding twelve-month average for the Rural inflation rate in August 2025 was 23.07%. This was 6.25% points lower compared to the 29.32% recorded in August 2024.
Food inflation
The food inflation rate in August 2025 was 21.87% on a year-on-year basis. This was 15.65% points lower compared to the rate recorded in August 2024, which was at 37.52%.
The NBS noted that the significant decline in the annual food inflation figure is technically due to the change in the base year.
“On a month-on-month basis, the Food inflation rate in August 2025 was 1.65%, down by 1.47% compared to July 2025 (3.12%),” NBS stated.
The decrease, according to NBS, can be attributed to the rate of decline in the average prices of Rice (Imported), Rice (local), Guinea corn flour, Maize flour sold loose, Guinea Corn (Sorghum), Millet, Semolina, Soya milk, etc.
The average annual rate of Food inflation for the twelve months ending August 2025 over the previous twelve-month average was 25.75%, which was 11.24% points lower compared with the average annual rate of change recorded in August 2024, which was at 36.99%.
Core inflation
The NBS report noted that core inflation, which excludes the prices of volatile agricultural produces and energy, stood at 20.33% in August 2025 on a year-on-year basis; a decline of 7.25% when compared to the 27.58% recorded in August 2024.
On a month-on-month basis, the Core Inflation rate was 1.43% in August 2025, up by 0.46% compared to July 2025, which was at 0.97%.
The average twelve-month annual inflation rate was 23.04% for the twelve months ending August 2025, which was 2.14% points lower than the 25.18% recorded in August 2024.
What you should know
The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, projected a future decline in interest rates, citing easing inflation and improved capital allocation efficiency as key drivers.
Speaking at the European Business Chamber (Eurocham Nigeria) C-Level Forum in Lagos, Cardoso emphasized that the current high lending rates, ranging between 32% and 36% on commercial loans, could see downward pressure as macroeconomic conditions stabilize.
At its 301st Monetary Policy Committee (MPC) meeting held in July, CBN voted unanimously to maintain the MPR at 27.5%.
