National Bureau of Statistics NBS has said that Nigeria’s headline inflation rate eased to 20.12 per cent for a fifth straight month in August, helped by a slowdown in food inflation. The decline to 20.12 per cent year on year from 21.88 per cent in July could bolster the case for the Central Bank of Nigeria to start cutting interest rates at a monetary policy meeting next week. Inflation has been on a downtrend trajectory this year after the statistics office revised its base year and adjusted the weight of items in its price index. Food inflation, a key driver of the headline rate, stood at 21.87 per cent year on year in August compared with 22.74 per cent the month before. Headline inflation dropped to 20.12% year-on-year, down from 21.88% in July. On a monthly basis, Inflation dropped as well to 0.74% from 1.99% in July.
In August 2025, the Headline CPI recorded 20.12%, from 21.88% recorded in July 2025. On a month-to-month basis, the inflation rate in August 2025 was 0.74%, which was 1.25% lower than the rate recorded in July 2025 (1.99%). Food inflation, a significant driver of overall inflation, fell to 21.87% in August 2025 from 22.74% in July 2025. On a month-on-month basis, August 2025 was 1.65%, down by 1.47% compared to July 2025 (3.12%). Core inflation, which excludes volatile agricultural produce and energy prices, stood at 20.33% in August, from 21.33% in July 2025. On a month-on-month basis, the Core Inflation rate was 1.43% in August 2025, up by 0.46% compared to July 2025 (0.97%). The central bank held its benchmark lending rate at 27.50% in July. But some analysts said at the time they thought an easing cycle could start in September given relative stability in the naira currency and the fact that further disinflation was expected. This month the naira has gained on the official market, which should mean inflation continues to fall in the months ahead.
Nigeria’s inflation rate continued its downward trend in August 2025—NBS
