By Atoyebi Nike
Nigeria’s inflation rate eased further in August 2025, dropping to 20.12% from 21.88% in July, according to figures released on Monday by the National Bureau of Statistics (NBS).
The report showed that on a month-to-month basis, headline inflation stood at 0.74%, reflecting a slower pace of price increases compared to the previous month.
Urban inflation fell to 19.75% year-on-year, down sharply from 34.58% in August 2024, while rural inflation dropped to 20.28% from 29.95% within the same period.
Food inflation slowed significantly to 21.87% in August, compared with 37.52% a year earlier. NBS attributed the decline to falling prices of rice, maize flour, sorghum, millet, semolina, and soya milk. On a monthly basis, food inflation stood at 1.65%, down from 3.12% in July.
Core inflation, which excludes farm produce and energy, dropped to 20.33% year-on-year in August from 27.58% in August 2024. However, it rose slightly to 1.43% on a month-to-month basis.
Central Bank of Nigeria (CBN) Governor Olayemi Cardoso said the sustained decline in inflation could lead to lower lending rates. Speaking at the Eurocham Nigeria C-Level Forum in Lagos, he noted that commercial loan rates, currently between 32% and 36%, may ease as economic conditions improve.
The CBN’s Monetary Policy Committee had earlier voted to keep the benchmark interest rate at 27.5% during its July meeting.
