Nigeria’s headline inflation eased for the fifth straight month in August 2025, offering consumers some respite from soaring living costs.

The National Bureau of Statistics (NBS), in its latest Consumer Price Index (CPI) report released on Monday, said inflation slowed to 20.12 per cent in August, down from 21.88 per cent in July. The figure marks a 1.76 percentage point month-on-month decline and a sharp drop from 32.15 per cent recorded in August 2024.

Despite the moderation, the CPI inched up to 126.8 points in August from 125.9 points in July. Month-on-month inflation slowed to 0.74 per cent from 1.99 per cent, signalling weaker price increases across the economy.

The NBS noted that inflationary pressures remain uneven across regions. Urban inflation fell to 19.75 per cent year-on-year in August, from 34.58 per cent a year earlier, while rural inflation stood slightly higher at 20.28 per cent compared with 29.95 per cent in August 2024.

On a monthly basis, urban inflation slowed to 0.49 per cent from 1.86 per cent in July, while rural inflation eased to 1.38 per cent, down from 2.30 per cent. The figures highlight the sharper impact of inflation in rural communities, where distribution and supply chain challenges keep price growth elevated.

Food inflation, the dominant driver of Nigeria’s inflation basket, also moderated but remained high. The food index slowed to 21.87 per cent year-on-year in August from 37.52 per cent a year earlier. On a monthly basis, food inflation dropped to 1.65 per cent from 3.12 per cent in July.

Staple items such as rice, guinea corn flour, maize flour, millet, semolina, and soya milk recorded notable price declines. The twelve-month average food inflation eased to 25.75 per cent, down from 36.99 per cent a year earlier.

Still, food costs remain steep, particularly in northern states where insecurity and logistics bottlenecks continue to disrupt supply chains.

Meanwhile, core inflation — which excludes volatile agricultural products and energy — fell to 20.33 per cent year-on-year in August from 27.58 per cent in the same month of 2024. However, on a monthly basis, it rose to 1.43 per cent from 0.97 per cent, reflecting pressures from housing, electricity, gas, transport, education, and healthcare.

Across the states, inflation trends varied widely. Ekiti recorded the highest year-on-year headline inflation at 28.17 per cent, followed by Kano (27.27 per cent) and Oyo (26.58 per cent). At the other end, Zamfara (11.82 per cent), Anambra (14.16 per cent), and Enugu (14.20 per cent) posted the lowest figures.

Food inflation was highest in Borno (36.67 per cent), Kano (30.44 per cent), and Akwa Ibom (29.85 per cent), while Zamfara (3.30 per cent), Yobe (3.60 per cent), and Sokoto (6.34 per cent) recorded the lowest.

On a monthly basis, inflation rose fastest in Yobe (9.20 per cent), Katsina (8.59 per cent), and Sokoto (6.57 per cent). Enugu (–5.32 per cent), Taraba (–3.64 per cent), and Nasarawa (–3.56 per cent) saw declines.

The latest figures come ahead of the Central Bank of Nigeria’s Monetary Policy Committee (MPC) meeting scheduled for September 22–23, 2025. Policymakers are expected to weigh whether to maintain or adjust the current 27.5 per cent benchmark interest rate.

While five consecutive months of disinflation may provide some policy space, the persistence of food and core inflation suggests the MPC could tread cautiously in its next move.