According to the NBS Consumer Price Index report released on Monday, food inflation also slowed, falling to 1.65% month-on-month in August, compared to 3.12% in July.
The agency attributed the decline to a reduction in the average prices of key staples such as imported and local rice, guinea corn flour, maize flour, sorghum, millet, semolina, and soya milk.
On a year-on-year basis, headline inflation dropped significantly, standing at 12.03% lower than the 32.15% recorded in August 2024, a development NBS linked to a change in the statistical base year.
Breaking it down further, the report showed that:
- Month-on-month headline inflation stood at 0.74% in August, lower than 1.99% in July, indicating slower growth in price increases.
- Food inflation (year-on-year) dropped to 21.87% in August, a steep decline from 37.52% in August 2024.
- The 12-month average food inflation rate as of August 2025 was 25.75%, lower than the 36.99% recorded in August 2024.
Economists say the slowdown in inflation offers some relief for households battling high living costs, though challenges remain as food prices continue to dominate Nigeria’s inflationary trend.
The report underscores that while prices are still rising, the pace of increase has slowed, raising cautious optimism for improved economic stability in the months ahead.
