Nigeria’s Inflation Eases to 21.88% in July, Fourth Monthly Drop

Nigeria’s headline inflation rate declined for the fourth straight month in July 2025, dropping to 21.88% from 22.22% in June, according to data from the National Bureau of Statistics.

The Consumer Price Index report, published on Friday, indicated that July’s inflation rate was 0.34 percentage points lower than June’s and significantly down by 11.52 percentage points from the 33.40% recorded in July 2024.

The NBS report stated, “The Consumer Price Index rose to 125.9 in July 2025, reflecting a 2.5-point increase from the preceding month (123.4).

“In July 2025, the Headline inflation rate eased to 21.88 per cent relative to the June 2025 headline inflation rate of 22.22 per cent.

“Looking at the movement, the July 2025 Headline inflation rate showed a decrease of 0.34 per cent compared to the June 2025 Headline inflation rate.”

The NBS highlighted that the substantial year-on-year decline was partly due to the recent adjustment in the CPI base year.

Despite the annual slowdown, short-term price pressures persisted, with the month-on-month inflation rate rising to 1.99% in July from 1.68% in June, indicating ongoing challenges for households.

Food inflation recorded a year-on-year rate of 22.74% in July, a sharp drop from 39.53% in July 2024. Every month, food prices increased by 3.12%, slightly lower than June’s 3.25%. Slower price rises in items like vegetable oil, local rice, maize flour, guinea corn, wheat flour, and millet contributed to this moderation.

Urban areas saw a year-on-year inflation rate of 22.01%, while rural areas recorded 21.08%. However, rural monthly inflation was higher at 2.30%, compared to 1.86% in urban areas.

Core inflation, excluding volatile agricultural products and energy, decreased to 21.33% in July from 27.47% a year earlier. On a month-on-month basis, it dropped to 0.97% from 2.46% in June, signalling reduced pressure in non-food sectors.

At the state level, Borno, Niger, and Benue had the highest year-on-year inflation rates at 34.52%, 27.18%, and 25.73%, respectively. In contrast, Yobe (11.43%), Zamfara (12.75%), and Katsina (15.64%) recorded the lowest.

While the annual inflation rate continues to ease, persistent monthly price increases highlight the ongoing burden of high living costs for many Nigerians.