The National Bureau of Statistics (NBS) on Monday recorded a reduction in headline inflation for August 2025, dipping to 20.12% from 21.88% in July.
The reduction reflects a 1.76 percentage point decline compared to the previous month, signaling potential stabilization in price levels despite ongoing challenges in food and energy sectors.
The NBS data, released on September 15, 2025, provides a critical summary for investors and policymakers aiming to foster sustainable growth in Africa’s largest economy.
The Consumer Price Index (CPI), a key measure of average price changes for goods and services, increased to 126.8 in August, up 0.9 points from July’s 125.9.
On a year-on-year basis, the August 2025 inflation rate of 20.12% represents a 12.03 percentage point drop from the 32.15% recorded in August 2024, underscoring a broader cooling trend when viewed against the previous year’s highs.
The moderation was attributed to seasonal factors and improved supply chains, though they caution that base effects from a different reference period—November 2009 = 100—may influence comparisons.
Month-on-month, inflation stood at 0.74% in August, a significant 1.25 percentage point reduction from July’s 1.99%. This indicates that the pace of price increases slowed considerably within the month, offering households a slight buffer against the cumulative impact of earlier surges.
The CPI, which tracks 242 item strata across 74 urban and rural population areas in Nigeria’s 36 states and the Federal Capital Territory, draws on 2023 household expenditure weights and prices from retail outlets nationwide. It categorizes items using the 2018 Classification of Individual Consumption
According to Purpose (COICOP), spanning divisions like food, housing, and transport.
While the report highlights positive momentum, analysts note that inflation remains elevated compared to global benchmarks, driven by factors such as naira volatility and import dependencies.
The NBS emphasized that the CPI serves as a macroeconomic indicator for consumer purchasing power, directly informing policy decisions on monetary and fiscal fronts.
Stakeholders expressed optimism that sustained declines could pave the way for economic recovery, but persistent risks like fuel pricing and climate impacts on agriculture warrant vigilance.