MON SEPT 15 2025-theGBJournal| Data released by the National Bureau of Statistics today, showed Nigeria’s headline inflation including food fell 176bps to 20.12% y/y in August down from 21.88% in July, marking the fourth consecutive months of easing from April and in line with economists’ forecast.
On a month-on-month basis, consumer prices slowed by 125bps to 0.74% (July: 1.99% m/m), the signals a cooling inflation pressure overall.
Food inflation also fell, dropping 87bps to 21.87% y/y in August from 22.74% y/y in July.
Similarly, on a month-on-month basis, food inflation slowed by 147bps to 1.65% from 3.12% m/m) in July, attributed to the rate of decrease in the average prices of Rice (Imported), Rice (local), Guinea corn flour, Maize flour sold loose, Guinea Corn (Sorghum), Millet, Semolina, Soya milk, etc.
The deceleration in food inflation is expected to continue to the end of the year as the Federal and State Governments intensify effort at tackling its main bane-insecurity.
This is besides the increasing level of incentives to farmers including the provision of modern farming techniques and high yielding seeds.
Elsewhere, core inflation (all items excluding farm produce and energy) eased by 100bps to 20.33% y/y in August (July: 21.33% y/y).
However, on a month-on-month basis, the core index inched higher by 46bps to 1.43% m/m (July: 0.97% m/m).
Overall, Nigeria’s core CPI growth continues to decelerate amid stabilizing petrol price and the local currency stability.
Market expects this easing inflation to prompt the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) to consider rate cut in their next meeting.
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