HEADLINE INFLATION rate in Nigeria slowed to 20.12 per cent in August 2025, down from 21.88 per cent in July 2025, according to the latest data released by the National Bureau of Statistics (NBS).
The report showed that inflation eased by 1.76 percentage points month-on-month, offering some relief after months of elevated price pressures.
Month-on-month trends
The NBS noted that the month-on-month headline inflation rate stood at 0.74 per cent in August, a drop of 1.25 percentage points compared to July’s 1.99 per cent.
“This means that in August 2025, the rate of increase in the average price level was lower than the rate of increase in the average price level in July 2025,” the bureau stated.
Food inflation remained elevated, rising by 1.65 per cent on a monthly basis.
The Consumer Price Index (CPI) also inched up, moving from 125.9 in July to 126.8 in August 2025.
Year-on-year decline
On a year-on-year basis, inflation slowed sharply compared to August 2024, when the rate stood at 32.15 per cent.
The statistics office said this represented a 12.03 percentage point decrease, even though the calculations used a different base year (November 2009 = 100).
Calls for social safety nets
Despite the slowdown, Nigerians continue to face rising living costs, prompting calls for government intervention.
Earlier in August, the Director-General of the World Trade Organisation (WTO), Ngozi Okonjo-Iweala, urged the Federal Government to strengthen social protection systems to cushion the impact of ongoing reforms.
“We think that the President and his team have worked hard to stabilise the economy. You cannot really improve an economy unless it is stable.
“So, he has to be given the credit for the stability of the economy. The reforms have been in the right direction,” Okonjo-Iweala told reporters after a meeting with President Bola Tinubu.
“What is needed next is growth; we now need to grow the economy, and we need to put in social safety nets so that people who are feeling the pinch of the reforms can also have some support to weather the hardship. That’s the next step,” she added.
Outlook
Economic analysts say the decline in inflation offers a positive signal, but sustained relief will depend on broader fiscal measures, currency stability, and support systems for vulnerable households.
