Nigeria’s inflation rate fell to 20.12 percent in August 2025, down from 21.88 percent in July, marking a 1.76 percent decline. This is the fifth straight monthly drop since April 2025, when the rate stood at 23.71 percent.
The National Bureau of Statistics (NBS) disclosed the figures in its Consumer Price Index (CPI) report released on Monday.
According to the report, the August headline inflation was 12.03 percentage points lower than the 32.15 percent recorded in August 2024. “This shows that the headline inflation rate decreased in August 2025 compared to the same month in the preceding year, though with a different base year,” the NBS stated.
Urban inflation declined faster at 19.75 percent compared to rural inflation at 20.28 percent. Food inflation also eased, falling to 21.87 percent in August from 22.7 percent in July. The drop was driven by reduced average prices of staple items such as imported and local rice, guinea corn flour, maize flour, millet, soya milk, and emolina.
The report noted: “The Food Inflation rate in August 2025 was 21.87 percent on a year-on-year basis, 15.65 percentage points lower compared to the rate recorded in August 2024 at 37.52 percent.”
The NBS attributed part of the sharp annual food inflation decline to the technical impact of a new base year.
State-level analysis showed Borno with the highest year-on-year food inflation at 36.67 percent, followed by Kano at 30.44 percent and Akwa Ibom at 29.85 percent. The slowest increases were recorded in Zamfara (3.30 percent), Yobe (3.60 percent), and Sokoto (6.34 percent).
The sustained decline in inflation comes as policymakers monitor price stability ahead of further economic adjustments.
