Nigeria’s inflation rate dropped for the fourth month in a row in July, settling at 21.88 per cent from 22.22 per cent in June, according to new figures from the National Bureau of Statistics (NBS).
The data, released on Friday, August 15, shows the pace of price increases is slowing compared to last year.
Inflation was 33.40 per cent in July 2024, meaning the annual rate has fallen by 11.52 percentage points over the past year.
The NBS noted that the Consumer Price Index (CPI), which tracks changes in the cost of goods and services, rose to 125.9 points in July, up from 123.4 points in June.
“Looking at the movement, the July 2025 Headline inflation rate showed a decrease of 0.34 per cent compared to the June 2025 rate,” the bureau stated, explaining that the sharp drop from last year was partly due to a recent change in the CPI’s base year.
However, despite the slowdown in annual inflation, prices are still climbing month by month.
Month-on-month inflation rose to 1.99 per cent in July from 1.68 per cent in June, signalling continued cost pressures on households.
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Food prices remain a major driver. Food inflation stood at 22.74 per cent year-on-year in July, down from 39.53 per cent a year earlier.
On a monthly basis, food costs increased by 3.12 per cent, slightly less than June’s 3.25 per cent rise. Slower price hikes were recorded for items like vegetable oil, local rice, maize flour, guinea corn, wheat flour and millet.
Urban inflation came in at 22.01 per cent year-on-year, while rural inflation was 21.08 per cent. Rural areas, however, saw faster monthly increases at 2.30 per cent compared to 1.86 per cent in cities.
Core inflation, which strips out volatile food and energy prices, slowed to 21.33 per cent in July from 27.47 per cent a year earlier. On a monthly basis, it fell to 0.97 per cent from 2.46 per cent in June, showing a softer rise in non-food goods and services.
Across the states, Borno (34.52 per cent), Niger (27.18 per cent) and Benue (25.73 per cent) posted the highest annual inflation rates. Yobe (11.43 per cent), Zamfara (12.75 per cent) and Katsina (15.64 per cent) recorded the lowest.
While the slowdown in headline inflation offers some relief on paper, the steady monthly increases mean many Nigerians are still struggling with a high cost of living.Nigeria’s inflation eased to 21.88% in July from 22.22% in June, but rising monthly costs keep pressure on households nationwide.