Nigeria’s inflation falls to 21.88% in July — fourth monthly decline since NBS methodology change

Nigeria’s annual inflation rate eased to 21.88 percent in July from 22.22 percent in June, the National Bureau of Statistics (NBS) said on Thursday.

It is the fourth consecutive monthly decline since the statistical agency updated its methodology earlier this year, including a new base year and reweighted Consumer Price Index (CPI) basket.

The changes helped pull the rate down from over 34 percent in 2024.

Food inflation, which remains the biggest contributor to the headline figure, rose to 22.74 percent year-on-year in July from 21.97 percent in June.

While still high, it is well below the 39.5 percent peak recorded in July 2024.

On a month-on-month basis, headline inflation quickened to 1.99 percent in July from 1.68 percent in June, reflecting persistent short-term price pressures.

The CPI index increased to 125.9 points from 123.4 in June.

Last month, the Central Bank of Nigeria (CBN) left its benchmark interest rate unchanged at 27.50 percent for the third time in 2025.

Governor Olayemi Cardoso said the decision was aimed at sustaining the disinflation trend.

Analysts say the moderation could improve business margins by slowing the pace of input cost increases and slightly easing pressure on household budgets.

However, elevated food prices and regional price disparities continue to weigh heavily on consumers.

Policymakers remain cautious, with concerns over potential supply disruptions and global commodity price swings.