According to NBS, Nigeria’s inflation rate fell again in August 2025, marking the fifth month in a row that it has dropped. This gave consumers a break from the high expense of living.
The National Bureau of Statistics released data Wednesday that showed inflation fell from 21.88 percent in July to 20.12 percent.
The number is down 1.76 percentage points from last month and a big drop from the 32.15 percent registered in August 2024, according to The PUNCH.
In August, the Consumer Price Index, which measures how much prices of goods and services fluctuate on average, went up from 125.9 points in July to 126.8 points.
Inflation from one month to the next was 0.74 percent, down from 1.99 percent in July. This means that prices are rising more slowly across the country.
The article said, “In August 2025, the Consumer Price Index went up to 126.8, which was a 0.9-point rise from the month before (125.9).
The headline inflation rate dropped from 21.88 percent in July 2025 to 20.12 percent in August 2025.
“Based on the movement, the Headline inflation rate for August 2025 was 1.76 percent lower than the Headline inflation rate for July 2025.”
The statistics agency said that inflationary pressures are still not evenly distributed. In August, urban inflation dropped from 34.58 percent a year earlier to 19.75 percent. Rural inflation, on the other hand, rose from 29.95 percent in August 2024 to 20.28 percent.
Inflation in cities decreased to 0.49 percent per month from 1.86 percent in July. In rural areas, it fell to 1.38 percent from 2.30 percent.
The numbers show that inflation has a bigger effect on rural areas, because transportation, distribution, and supply chain problems keep prices rising faster than in cities.
Food inflation, which is still the biggest cause of Nigeria’s inflation basket, went down in August but stayed high.
The indicator fell from 37.52 percent in August 2024 to 21.87 percent year-on-year. Food inflation fell to 1.65% from 3.12% in July, which is a month-to-month change.
The moderation was caused by the prices of basic foods such rice, guinea corn flour, maize flour, millet, semolina, and soya milk going down.
The average food inflation rate over the past year was 25.75%, which is lower than the 36.99% rate from the year before.
Even though things are getting better, food costs are still high, especially in the northern regions where supply chains have been disrupted by instability and problems with transportation.
Core inflation, which doesn’t include energy and agricultural products that change a lot, was 20.33 percent year-on-year in August, down from 27.58 percent in August 2024.
The index, on the other hand, went up every month, from 0.97 percent in July to 1.43 percent in August. This was because of rising costs in areas including housing, water, energy, gas, transportation, education, and healthcare.
The trend implies that while headline inflation is going down, inflationary pressures on non-food items are still strong. This worries policymakers and monetary authorities who closely watch core inflation as a sign of structural pressures.
Inflation trends were still diverse among the states. Ekiti had the highest year-on-year headline inflation rate at 28.17 percent. Kano came in second at 27.27 percent, while Oyo came in third at 26.58 percent. Zamfara had the lowest rate at 11.82 percent, Anambra at 14.16 percent, and Enugu at 14.20 percent.
Borno had the highest food inflation rate at 36.67%, followed by Kano at 30.44% and Akwa Ibom at 29.85%. Zamfara had the lowest rate at 3.30%, Yobe at 3.60%, and Sokoto at 6.34%.
Yobe, Katsina, and Sokoto all had the highest monthly inflation rates, at 9.20%, 8.59%, and 6.57%, respectively. Enugu, Taraba, and Nasarawa all had lower rates, at –5.32%, –3.64%, and –3.56%, respectively.
The news that inflation is slowing down comes just days before the Central Bank of Nigeria’s Monetary Policy Committee meeting on September 22 and 23, 2025.
The committee will talk on whether to keep or change the existing 27.5 percent benchmark interest rate.
Five months of falling inflation could allow the bank more freedom in its policy, but the fact that food and core inflation are still rising may make the MPC more careful in its decisions.
About the Author
