Nigeria’s Inflation Eases for Third Month Ahead of Key Interest Rate Decision
Nigerian inflation experienced its third consecutive monthly decline in June, with consumer prices advancing 22.22 per cent year-over-year, potentially providing relief as the Monetary Policy Committee approaches its critical interest rate determination.
The National Bureau of Statistics reported that Nigeria’s primary inflation rate decelerated to 22.22 percent in June 2025, down from the previous month’s 22.97 percent reading, continuing a three-month downward trend.
Monthly inflation figures showed a rise to 1.68 per cent in June from May’s 1.53 percent, suggesting an accelerated pace of price increases throughout the economy.
The Central Bank of Nigeria has scheduled the 301st Monetary Policy Committee meeting for Monday, July 21, and Tuesday, July 22, 2025, during which crucial interest rate decisions will be made.
At the May meeting, the MPC had warned that reinflationary pressures were still significant, arguing that maintaining elevated interest rates was necessary to mitigate those risks. The Committee also raised concerns that any premature rate cut might destabilise the naira, especially as the current FX rate gains have been supported by attractive yields on Open Market Operation (OMO) bills.
Food price inflation decreased substantially on an annual basis to 21.97 per cent in June from May’s 21.14 per cent. The National Bureau of Statistics attributed this significant reduction primarily to base-year effects resulting from the inflation rebasing methodology.
Monthly food inflation, however, increased marginally to 3.25percent in June from 2.19 per cent in May. The price increase was led by staple foods such as Green Peas (Dried), Pepper (Fresh), Shrimps (white dried), Crayfish, Meat (Fresh), Tomatoes (Fresh), Plantain Flour, Ground Pepper, etc.
