Nigeria’s inflation rate fell again for the seventh consecutive month to 16.1 percent, making leeway for a sizable reduction in the benchmark rate.
Annual inflation decelerated to 16.1 percent in October from 18.02 percent in the previous month, as reported by the National Bureau of Statistics (NBS). BusinessDay’s survey
Analysts at CardinalStone projected further moderation in inflation, as the drivers that were obtainable in September 2025 are likely to persist.
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This deceleration was driven by declines in both food and core inflation. Particularly, food inflation dropped to 13.1 percent year-on-year in October from 16.87 percent in September 2025, attributed to softer prices of staples such as Maize, Garri, Beans, Eggs, and Tomatoes. Similarly, core inflation slumped to 18.7 percent in October 2025 from 19.53 percent in September 2025.
Analysts at Meristem projected food inflation to ease further in the near term, supported by the ongoing harvest season and government food security interventions.
“ However, festive season demand and recent PMS price adjustments due to union strikes could temper the pace of disinflation. Core inflation should remain broadly stable amid sustained FX stability, though risks from global energy and trade disruptions persist. Overall, headline inflation is projected to maintain its downward trajectory in the short term, underpinned by ongoing disinflationary forces,” it said.
It said that the softer inflation outlook reinforces the case for additional monetary easing by the CBN at its November policy meeting. “We expect a 100bps reduction in MPR to 26.0 percent.”
The Monetary Policy Committee is set to meet on the 24th and 25th of this month to determine the country’s benchmark interest rate.