WED JULY 16 2025-theGBJournal| Nigeria’s consumer inflation continued to ease in June, extending its slide for the third consecutive month, National Bureau of Statistics (NBS) dated showed on Wednesday.
Headline inflation fell 75bps to 22.22% in June 2025, from 22.97% recorded in May 2025, reflecting moderation across key components.
Food inflation came in a bit higher at 83bps to 21.97% y/y in June, as projected by analysts.
On a month-on-month basis, June 2025 food inflation was 3.25%, up by 1.06% compared to May 2025 (2.19%), attributed to the rate of increase in the average prices of Green Peas (Dried), Pepper (Fresh), Shrimps (white dried), Crayfish, Meat (Fresh), Tomatoes (Fresh), Plantain Flour, Ground Pepper.
Similarly, core inflation (all items excluding farm produce and energy) edged higher by 48bps to 22.76% y/y in June (May: 22.28% y/y). On a month-on-month basis, the core index increased sharply by 136bps to 2.46% m/m (May: 1.10% m/m).
The continued downward inflation trajectory has been largely influenced by the rebasing of the Consumer Price Index (CPI) by the NBS.
The new base year, 2024, coincides with a period of historically high inflation, amplifying base effects and contributing to the moderation in year-on-year inflation readings.
Besides, the exchange rate dynamics also played a crucial role. In June, the naira traded within the N1,500–N1,600 range to the U.S. dollar, reflecting improved FX market conditions.
This relative stability was largely supported by the Central Bank of Nigeria’s (CBN) intervention in the foreign exchange market, which helped contain imported inflation pressures and bolstered broader price stability.
Meanwhile, food inflation risks remain elevated. As Nigeria enters the peak of the rainy season, concerns are growing over potential disruptions to food supply, especially from climate-related flooding and rising insecurity in key agricultural zones.
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