Nigerian inflation slows down again in August, down to 20.12% because of the price of alleviating food

The Nigerian inflation rate continued its setback in August 2025, down to 20.12% from 21.88% in July, marking the decline in the fifth month in a row, according to the latest data from the National Statistics Bureau (NBS).

The NBS report showed a decline in 1.76 points of percentage from the previous month and confirmed the sustainable decline which began in April 2025, when inflation peaked at 23.71%.

“In August 2025, the headline inflation rate subsided to 20.12 percent relative to the headline inflation rate in July 2025 by 21.88 percent,” NBS said.

In the years-to-year, headline inflation has dropped significantly and 12.03 percentage points from 32.15% recorded in August 2024.

“At the bottom of the year, the headline inflation rate is 12.03 the percentage point is lower than the level recorded in August 2024 (32.15 percent),” NBS added.

The Statistics Agency partly linked the decline in the year-to-year with the change of the Basic Year of the Consumer Price Index (CPI), now established in November 2009 = 100.

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Urban inflation rates fell sharper than rural levels in August. Urban inflation subsided to 19.75%, while rural inflation was slightly higher at 20.28%.

Food inflation also showed signs of cooling, down to 21.87% in August from 22.70% in July. This is mostly due to price declines in the main food category.

NBS noted that the reduction in food prices was mainly driven by a reduction in the average cost of important items such as imported and local rice, corn flour guinea, corn flour, sorghum, millet, semolina, and soy milk.

Year-to-Year, Food inflation recorded a steep decline in 15.65 points percentage from 37.52% in August 2024.

This report also highlights a significant regional difference in food inflation:

-The highest level of food inflation in-to-year-to-year: Borno (36.67%), Kano (30.44%), and Akwa Ibom (29.85%).

-The lowest year-to-year-to-year inflation: Zamfara (3.30%), Yobe (3.60%), and Sokoto (6.34%).

While inflation remains a major economic concern, the latest numbers show that Nigeria may turn, especially as the price of food – often the most felt by the household – is better for moderate.