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By Segun Odunewu, Lagos and Benjamin Umuteme, Abuja
The inflation of the title of Nigeria slowed down for the fifth consecutive month in August 2025, providing some respite for consumers struggling with high living costs.
The data released on Monday by the National Bureau of Statistics (NBS) showed that inflation dropped to 20.12 percent, decreasing from 21.88 percent in July.
The figure represents a drop of 1.76 percentage points on a month on month and a strong drop from 32.15 percent recorded in August 2024.
The consumer price index, which keeps trace of the average variation of the prices of goods and services, reached up to 126.8 points in August from 125.9 points in July.
The monthly inflation on the month was 0.74 percent, less than 1.99 percent in July, indicating increases in the slower prices across the country.
The report read: “The consumer price index rises to 126.8 in August 2025, reflecting an increase of 0.9 points compared to the previous month (125.9).
“In August 2025, the title inflation rate mitigated to 20.12 percent compared to the main inflation rate of July 2025 of 21.88 percent.
“Observing the movement, the inflation rate of the title of August 2025 showed a decrease of 1.76 percent compared to the inflation rate of the title of July 2025.”
The statistics office observed that the inflationary pressures remained irregular, urban inflation increased to 19.75 % on an annual basis in August from 34.58 percent of a year earlier, while rural inflation was slightly higher at 20.28 percent than 29.95 percent in August 2024.
On a monthly basis, inflation in urban areas slowed down 0.49 percent from 1.86 percent in July, while rural inflation reached 1.38 percent, less from 2.30 per cent.
… in rural communities
The figures underline the most acute impact of inflation in rural communities, in which the transport, distribution and supply chain challenges continue to guide a higher growth of the higher than urban centers.
Food inflation, which remains the strongest engine of the Nigeria inflation basket, is also moderate in August but has remained high.
The index dropped to 21.87 percent year by year from 37.52 percent in August 2024.
On a month of month of month, food inflation slowed down at 1.65 percent, compared to 3.12 percent in July.
The moderation was linked to the drop in staple prices, including rice, corn flour for guinea pig, corn flour, mile, semolina and soy milk.
The average of twelve months for food inflation was 25.75 percent, less than 36.99 percent recorded a year earlier.
Despite the improvement, food prices remained high, especially in the northern states where the bottlenecks of insecurity and logistics have continued to interrupt the supply chains.
The main inflation, which excludes volatile agricultural products and energy, was recorded at 20.33 percent of year to year in August, decreasing compared to 27.58 percent in August 2024.
However, the index increased on a monthly basis at 1.43 percent from 0.97 percent in July, reflecting pressure from categories such as accommodation, water, electricity, gas, transport, education and health care.
The movement suggests that while the inflation of the title is loosening, the non -food inflationary pressures remain persistent, raising concerns for political managers and monetary authorities that strictly monitor the basic inflation as an indicator of structural pressure.
…. Affirmed
In all states, the inflation trends have remained contrasting. Ekiti recorded the highest inflation year by year at 28.17 percent, followed by Kano at 27.27 percent and Oyo at 26.58 percent, while Zamfara at 11.82 percent, anambra at 14.16 percent and ENGUGU at 14.20 percent recorded the lowest.
Food inflation was higher in Borno at 36.67 percent, Kano at 30.44 percent and Akwa Ibom at 29.85 percent, while Zamfara at 3.30 percent, Yobe at 3.60 percent and Sokoto at 6.34 percent recorded the lowest.
On a monthly basis, inflation has increased faster in Yobe at 9.20 percent, Katsina at 8.59 percent and 6.57 percent sokotus, while ENUGU at –-5.32 percent, Taraba at –3.64 percent and Nasarawa at –3.56 % saw declini.
… the experts speak
Commenting on the data, an economist, Dr. Tunde Olayemi, of the Lagos Business School, said: “The drop in main inflation suggests that the recent monetary tightening by the Nigeria Central Bank (CBN) is starting to produce results.
“However, the persistent increase in food prices shows that structural issues, in particular insecurity in the producing areas of food and high transport costs, remain a great challenge”.
Likewise, Kemi Adeola, a financial analyst with Afrinvest Consulting, explained that the slowdown may not immediately translate into relief for normal Nigerians:
“While the decline of 20.12 percent is encouraging, the true story is in the food index. The Nigerians spend over 55 % of their revenue on food, therefore as long as the food inflation continues to rise, the average family will not feel this improvement,” said Adeola.
On the political front, experts believe that the CBN will monitor the tendency to inflation closely in view of the next meeting of the Monetary Policy Committee (MPC).
According to Ifeanyi Nwosu, responsible for research at Cowry’s asset management, “if inflation continues to moderate, it could provide the CBN with a certain flexibility in the management of interest rates. But with still hot food inflation, the bank may need to support its hawk position for a while longer.”
… implications for the MPC CBN meeting
The announcement of the slowdown of inflation comes a few days before the meeting of the Monetary Committee of the Central Bank of Nigeria (CBN) scheduled for 22 and 23 September 2025.
The committee will be approved whether to maintain or adapt the current reference rate of 27.5 percent.
During five consecutive months of disinflation, analysts argue that the MPC can adopt a cautious approach; Some others are anticipating a modest reduction, probably from 50 to 100 basis – in this next meeting.
In the last MPC meeting, held in July 2025, the Committee held the reference monetary policy rate (MPR) at 27.50% for the third time this year, giving priority to the control of the inflation between the ongoing pressures.
The financial analyst, Gabriel Idakolo, said Blueprint That with the inflation that is attached to 20.12% of the Nigerians could see the interest rate that cuts the CBN at the next MPC meeting.
“The CBN policy on the interest rate has constantly reduced the inflation month in the month in the last 4 months and it is a signal that the economy is taking a positive turning point.
“However, coherent interest rate increases have really influenced the real sector with the manufacturing sector and the services that he feels the pinch and, in turn, has caused a continuous increase in goods and services.
The reduction of interest rates could reduce pressure on the royal sector and cause a significant reduction in the cost of goods and services.
While the financial analyst, Sanya Adejokun said that the committee could keep the rate.
He told this newspaper that “the committee could probably want to keep the rates. They will still want to look at the economy and with the people who still cry, they may not cut rates”.
… Olamilekan differs
For the economist Adefolarin Olamilekan, the only loosening of inflation may not determine the outcome of the MPC meeting of the CBN.
Adefolarin told this journalist who can play a crucial role when the 12 -members MPC vote takes other parameters in consideration.
“This includes the international fluctuation of crude oil, the global reactions of financial markets to geopolitics in Eastern Europe and in the Middle East, as well as the recent decision of the US federal reserves to remain at the rate, the caution of the bank of England is shocked in the economy of the United Kingdom and not forget not to forget to mention the stall of the European Central Bank on handles for the strengthening of the policy of the policy. of the rates of the United States.
“Having said that, the news of an immersion to the nose in inflation for the fifth time will be the cherry for the Committee.”
“However, members can also pay attention to supporting the current rate to 27.50 which takes place from the current food inflation rate which has yet to fall significant as expected.
“But going ahead there is a probability for a decrease in the MPR rate,” he explained.
———- Message forwarded ——
From: Ahmid Lawal<[email protected]>
Date: Mon, 15 September 2025, 21:45
Subject: main story for the edition of Tuesday 16 September 2025
A: Abdullahi Danjuma[email protected]>, Raji Saidu Onipson[email protected]>, Ikenna okonkwo[email protected]>
