Nigeria’s headline inflation eased to 21.88% in July 2025, down from 22.22% in June, according to the latest Consumer Price Index (CPI) report released by the National Bureau of Statistics (NBS) on Friday.
This marks the fourth consecutive monthly decline, signaling that inflationary pressures in Africa’s largest economy are gradually receding after months of record highs that strained household budgets and pushed up the cost of living.
The NBS attributed the slowdown to stronger agricultural output, a recently stabilized exchange rate, and targeted government measures aimed at clearing supply chain bottlenecks.
On a month-to-month basis, consumer prices still rose but at a more moderate pace than in June, reflecting a deceleration in food and transport cost increases.
Despite the moderation, food inflation remains the biggest driver of price growth, fueled by robust demand and persistent logistical challenges.
Analysts warn that inflation is still far above the Central Bank of Nigeria’s target range, keeping the pressure on policymakers to strike a delicate balance between stimulating growth and ensuring price stability.
The latest data comes as the government ramps up efforts to boost local production, reduce reliance on imports, and maintain fiscal discipline measures viewed as critical to sustaining the downward inflation trend in the months ahead.
