Nigeria’s headline inflation eased to 20.12% in August 2025, down from 21.88% in July, the National Bureau of Statistics (NBS) reported on Monday. This represents a 1.76-percentage-point drop, the first notable slowdown in several months.
The NBS said month-on-month inflation was 0.74%, while food prices rose by 1.65% in August. On a year-on-year basis, inflation was 12.03 percentage points lower than the 32.15% recorded in August 2024.
“The rate of increase in the average price level was lower in August than in July,” the NBS said. The Consumer Price Index (CPI) rose to 126.8 in August, from 125.9 in July.
Food prices remain a concern
Despite the slowdown, food costs continue to strain household budgets. Analysts warn that essential items like rice, beans, and vegetables remain expensive, limiting relief for many Nigerians.
The WTO Director-General, Ngozi Okonjo-Iweala, recently urged the government to implement social safety nets to protect vulnerable Nigerians from rising living costs.
Signs of economic relief
The drop in inflation suggests prices may be stabilizing, and that recent economic measures could be having an effect. However, monthly increases in food and energy prices show that many households may not yet feel the relief.
The NBS data indicates a slower pace of price growth, which is important for policymakers, businesses, and consumers monitoring Nigeria’s economic recovery.
See also: Dangote’s push into economy
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