The National Bureau of Statistics (NBS) has reported that Nigeria’s headline inflation eased to 20.12 percent in August 2025, down from 21.88 percent in July, the fifth consecutive month of moderation in consumer prices.
According to the latest Consumer Price Index (CPI), the index rose to 126.8 points in August, compared to 125.9 in July, reflecting a 0.9-point increase.
On a month-on-month basis, inflation stood at 0.74 percent, lower than the 1.99 percent recorded in July, showing a slower pace of price increases.
On a year-on-year basis, inflation dropped by 12.03 percentage points, from 32.15 percent in August 2024 to 20.12 percent in August 2025.
The decline is partly attributed to the rebased CPI, which now uses November 2009 = 100 as the base year.
Divisional Contribution to Headline Index
The largest contributors to the headline index were:
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Food & Non-Alcoholic Beverages – 8.05%
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Restaurants and Accommodation Services – 2.60%
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Transport – 2.15%
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Housing, Water, Electricity, Gas, and Other Fuels – 1.69%
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Education Services – 1.25%
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Health – 1.22%
Other divisions such as clothing and footwear, communication, and personal care also contributed but at lower levels.
The twelve-month average CPI for the period ending August 2025 stood at 24.66 percent, compared to 31.26 percent in August 2024, indicating a decline of 6.6 percentage points.
Urban and Rural Inflation
Urban inflation eased to 19.75 percent year-on-year, down from 34.58 percent in August 2024. On a month-on-month basis, urban inflation slowed to 0.49 percent, compared to 1.86 percent in July.
Rural inflation was slightly higher at 20.28 percent year-on-year, down from 29.95 percent in August 2024. On a monthly basis, rural inflation stood at 1.38 percent, lower than 2.30 percent in July.
Food Inflation
Food inflation eased to 21.87 percent in August 2025, compared to 37.52 percent in August 2024, representing a decline of 15.65 percentage points. On a monthly basis, food inflation slowed to 1.65 percent, down from 3.12 percent in July.
The NBS attributed the decrease to slower price increases in key staples such as imported and local rice, guinea corn flour, maize flour, millet, semolina, and soya milk.
The twelve-month average food inflation rate stood at 25.75 percent, lower than 36.99 percent in August 2024.
Outlook
While the moderation in inflation offers relief for consumers, analysts caution that structural challenges such as currency volatility, energy costs, and supply chain inefficiencies continue to pose risks.
The decline in food inflation is significant for household consumption, but sustaining this trend will require stable agricultural supply and policy support.