LunagisthubNigeria’s Inflation Rate Drops to 16.05% in October 2025
The National Bureau of Statistics (NBS) has released its Consumer Price Index and Inflation report for October 2025, revealing a significant drop in Nigeria’s headline inflation rate to 16.05%. This marks a substantial decrease from the 18.02% recorded in September 2025.
Year-on-Year Decline: The inflation rate has dropped for the seventh consecutive month, indicating a positive trend in the country’s economic management.
Month-on-Month Increase: Despite the yearly decline, the headline inflation rose by 0.93% on a month-on-month basis in October, suggesting that prices are still increasing, albeit at a slower rate.
Food Prices Ease: Food inflation declined by 0.37% month-on-month, providing some relief to households struggling with rising food costs.
Several factors contribute to Nigeria’s inflation rate, including
Food and Non-Alcoholic Beverages: This category accounts for 40% of the total inflation rate, with food supply disruptions and volatile food prices being major concerns.
Transport and Housing:These sectors have seen significant price increases, contributing to the rising cost of living.
Energy and Utilities: Energy costs, including fuel and electricity, also play a role in driving inflation.
The NBS report sends mixed signals for policymakers, indicating that while the year-on-year disinflation is a positive sign, the month-on-month acceleration shows that pressures are not yet under control. The Central Bank of Nigeria is likely to maintain a tight monetary stance and may delay rate easing discussions .
Lunagisthub
