Nigeria’s inflationary pressures continued to moderate in November 2025 as the headline inflation rate eased to 14.45 percent, down from 16.05 percent recorded in October, according to the latest Consumer Price Index (CPI) data.
The slowdown reflects a combination of base-year effects and evolving price dynamics across key segments of the economy.
The CPI rose to 130.5 points in November from 128.9 points in the preceding month, indicating that consumer prices continued to increase on a monthly basis.
However, the pace of increase slowed on an annual comparison. The 1.6 percentage point decline in the headline inflation rate month on month confirms a sustained deceleration in year-on-year inflation.
On an annual basis, headline inflation in November 2025 was 20.15 percentage points lower than the 34.60 percent recorded in November 2024.
This sharp reduction underscores the impact of the revised base year and signals a significant moderation in reported inflation compared with the same period last year.
Despite the easing in year-on-year inflation, month-on-month inflation edged higher. Headline inflation on a month-on-month basis stood at 1.22 percent in November, compared with 0.93 percent in October. This indicates that while annual inflation slowed, the rate at which average prices increased within the month accelerated slightly.
Contributions to Headline Inflation
Food and non-alcoholic beverages remained the largest contributor to headline inflation on a year-on-year basis, accounting for 5.78 percentage points.
This was followed by restaurants and accommodation services, which contributed 1.87 percentage points, transport at 1.54 percentage points, and housing, water, electricity, gas, and other fuels at 1.22 percentage points.
Other notable contributors included education services at 0.90 percentage points, health at 0.88 percentage points, clothing and footwear at 0.73 percentage points, and information and communication at 0.48 percentage points.
Insurance and financial services, alcoholic beverages and tobacco, as well as recreation and culture, made minimal contributions to the overall headline figure.
On a month-on-month basis, food and non-alcoholic beverages again led price increases, contributing 0.49 percentage points.
Restaurants and accommodation services contributed 0.16 percentage points, transport 0.13 percentage points, and housing-related costs 0.10 percentage points. Education, health, and clothing categories recorded moderate increases, while recreation, sport, and culture recorded no change.
Average Inflation Trend
The average CPI for the twelve months ending November 2025 rose by 20.41 percent compared with the average of the previous twelve-month period.
This represents a significant decline of 12.36 percentage points from the 32.77 percent recorded in November 2024, reinforcing the downward trend in average inflation.
Urban Inflation
Urban inflation continued to ease in November. On a year-on-year basis, the urban inflation rate stood at 13.61 percent, down sharply from 37.10 percent in November 2024.
On a month-on-month basis, urban inflation slowed to 0.95 percent from 1.14 percent in October, suggesting a moderation in price pressures in major cities.
The twelve-month average urban inflation rate was 20.80 percent in November 2025, which was 14.27 percentage points lower than the 35.07 percent recorded in the corresponding period of the previous year.
Rural Inflation
Rural inflation remained higher than urban inflation on a year-on-year basis. The rural inflation rate in November 2025 was 15.15 percent, compared with 32.27 percent in November 2024, representing a decline of 17.12 percentage points.
However, month-on-month rural inflation accelerated sharply to 1.88 percent in November from 0.45 percent in October, indicating faster price increases in rural areas during the month. The twelve-month average rural inflation rate stood at 19.46 percent, down from 30.71 percent recorded in November 2024.
Food Inflation
Food inflation recorded a significant moderation on an annual basis. The food inflation rate stood at 11.08 percent year on year in November 2025, down from 39.93 percent in November 2024. The sharp decline is largely attributed to the change in the inflation base year.
On a month-on-month basis, food inflation rose to 1.13 percent in November from a contraction of 0.37 percent recorded in October.
The increase was driven by higher average prices of items such as dried tomatoes, cassava tubers, periwinkle, ground pepper, eggs, crayfish, melon, oxtail, and fresh onions.
The average annual food inflation rate for the twelve months ending November 2025 was 19.68 percent, representing a decline of 18.99 percentage points from the 38.67 percent recorded in November 2024.
Outlook
The continued easing of headline inflation provides policymakers with greater flexibility as they assess monetary policy direction heading into 2026. However, the rise in month-on-month inflation, particularly in rural areas and food prices, suggests that price pressures have not fully dissipated.
Analysts note that sustaining the disinflation trend will depend on exchange rate stability, food supply conditions, energy prices, and the effectiveness of monetary and fiscal coordination. While the headline figures point to easing inflation, underlying price dynamics remain mixed, requiring cautious policy calibration in the months ahead.