LunagisthubNigeria’s Inflation Rate Drops to 20.12% in August 2025
Nigeria’s headline inflation rate has declined for the fifth consecutive month, reaching 20.12% in August 2025, down from 21.88% in July. This significant drop provides some relief to consumers struggling with high living costs. The National Bureau of Statistics (NBS) reported that the Consumer Price Index (CPI) rose to 126.8 points in August from 125.9 points in July .
-Year-on-Year Inflation Rate:Decreased by 12.03% compared to August 2024, when the inflation rate was 32.15%.
– Month-on-Month Inflation Rate:Slowed to 0.74%, down from 1.99% in July, indicating a decrease in the rate of price increases.
– Urban vs. Rural Inflation:Urban inflation eased to 19.75% year-on-year, while rural inflation was slightly higher at 20.28%. Rural areas experience sharper inflation due to transportation and supply chain challenges.
-Year-on-Year Food Inflation:Moderated to 21.87% in August, down from 37.52% in August 2024.
– Month-on-Month Food Inflation: Slowed to 1.65%, compared to 3.12% in July .
The decline in inflation rate may influence the Central Bank of Nigeria’s decision on interest rates in its next meeting. With inflationary pressures remaining uneven, the government and monetary authorities will need to continue monitoring the situation to ensure sustained economic stability .
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