Nigeria’s headline inflation rate has slowed down for the fifth consecutive month, dropping to 20.12 per cent in August 2025 from 21.88 per cent in July.

This represents a 1.76 percentage point decline on a month-on-month basis and a significant drop from 32.15 per cent recorded in August 2024.

According to the National Bureau of Statistics, the Consumer Price Index rose to 126.8 points in August from 125.9 points in July.

Month-on-month inflation stood at 0.74%, lower than 1.99% in July, indicating slower price increases across the country. The statistics office noted that inflationary pressures remain uneven, with urban inflation easing to 19.75% year-on-year in August from 34.58% a year earlier, while rural inflation was slightly higher at 20.28% compared to 29.95% in August 2024.

Food inflation, a significant driver of Nigeria’s inflation basket, moderated in August but remained elevated, declining to 21.87% year-on-year from 37.52% in August 2024. On a month-on-month basis, food inflation slowed to 1.65%, compared to 3.12% in July, due to falling prices of staples like rice, guinea corn flour, and maize flour.

Core inflation, excluding volatile agricultural products and energy, was recorded at 20.33% year-on-year in August, down from 27.58% in August 2024. However, it rose on a monthly basis to 1.43% from 0.97% in July, reflecting pressures from categories like housing, water, electricity, gas, transportation, education, and healthcare.

Inflation trends varied across states, with Ekiti posting the highest year-on-year headline inflation at 28.17%, followed by Kano at 27.27%, and Oyo at 26.58%. Zamfara, Anambra, and Enugu recorded the lowest inflation rates.

The announcement comes just before the Central Bank of Nigeria’s Monetary Policy Committee meeting, where they will discuss whether to maintain or adjust the current 27.5 per cent benchmark interest rate. Analysts expect the committee to remain cautious due to persistent food and core inflation.