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Nigeria’s inflation rate has dropped to 21.88% in July 2025, down from 22.22% in June, according to the National Bureau of Statistics (NBS). This marks the fourth consecutive monthly decline in inflation since April. Despite the overall drop, food inflation rose to 22.74% in July from 21.97% in June. However, the rate is still 16.79% lower than the 39.53% recorded in July 2024, largely due to a change in the base year used for calculation.
The NBS attributes the decline in inflation to decreased prices of essential commodities like vegetable oil, white beans, local rice, maize flour, guinea corn, wheat flour, and millet. Food and non-alcoholic beverages, restaurants and accommodation services, and transport were the top contributors to the consumer prices index (CPI).
Nigeria’s headline inflation rate currently stands at 21.88%, down 0.34% from June 2025. Food inflation rose to 22.74% in July from 21.97% in June, with month-on-month food prices increasing by 3.12%. Core inflation, excluding volatile agricultural produce and energy, stood at 21.33% year-on-year, down 6.13% from July 2024.
The sustained drop in inflation is expected to influence discussions and decisions at the next meeting of the Central Bank of Nigeria’s Monetary Policy Committee. The decline in inflation rate may provide some relief to citizens, but rising food prices continue to pose challenges for many Nigerians. The government faces the challenge of ensuring that the revenue generated from economic activities translates into economic relief for citizens.
