Nigeria’s headline inflation rate eased to 21.88% in July 2025 from 22.22% in June, marking the fourth consecutive month of disinflation, according to the latest report from the National Bureau of Statistics (NBS). The decline represents a modest but notable improvement in price stability as the government and monetary authorities continue efforts to tackle inflationary pressures.
On a year-on-year basis, the July 2025 inflation rate was 11.52 percentage points lower than the 33.40% recorded in July 2024. This substantial drop highlights the impact of ongoing policy measures and the benefits of the updated base year used in calculating the Consumer Price Index (CPI). The NBS recently rebased its CPI to reflect 2024 data, adjusting basket weights and offering a more accurate representation of current price dynamics.
The monthly inflation rate for July stood at 1.99%, up from 1.68% in June, showing that while annual inflation is slowing, short-term price pressures remain present. Food inflation, a major driver of overall inflation, reached 22.74% year-on-year in July, slightly higher than 21.97% in June. Key contributors to inflation during the month included food and non-alcoholic beverages, restaurants and accommodation services, and transportation.
Urban inflation in July was recorded at 22.01%, significantly lower than the 35.77% recorded in July 2024, while rural inflation stood at 21.08%, down from 31.26% in the same period last year. Core inflation, which excludes volatile items like food and energy, slowed to 21.33% year-on-year with a monthly increase of 0.97%, down from 2.46% in June.
The Central Bank of Nigeria maintained its benchmark interest rate at 27.50%, underscoring its commitment to supporting the disinflation trend. Analysts believe that sustaining this momentum will require continued fiscal discipline, stable foreign exchange management, and policies to boost agricultural output and ease supply bottlenecks.
Key Inflation Statistics for July 2025
| Indicator | July 2025 (%) | June 2025 (%) | July 2024 (%) |
|---|---|---|---|
| Headline Inflation (Year-on-Year) | 21.88 | 22.22 | 33.40 |
| Monthly Inflation | 1.99 | 1.68 | — |
| Food Inflation (Year-on-Year) | 22.74 | 21.97 | — |
| Urban Inflation (Year-on-Year) | 22.01 | — | 35.77 |
| Rural Inflation (Year-on-Year) | 21.08 | — | 31.26 |
| Core Inflation (Year-on-Year) | 21.33 | — | — |
While the recent slowdown in inflation offers some relief to households and businesses, prices remain high compared to historical averages. Persistent food costs and transport expenses continue to put pressure on consumer spending. However, the downward trajectory in year-on-year inflation provides optimism that targeted economic reforms and effective monetary policy will gradually bring inflation closer to single digits in the medium term.
