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Nigeria inflation drops from 21.88% in July to 20.12% in August.
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NBS confirms moderation in urban, rural, food and core inflation.
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CBN projects lending rates may ease as macroeconomic stability improves.
Nigeria’s headline inflation rate fell for the fifth consecutive month, dropping to 20.12% in August 2025 from 21.88% in July 2025, according to fresh data from the National Bureau of Statistics (NBS) released on Monday.
On a month-on-month basis, headline inflation stood at 0.74%, marking a clear slowdown compared to previous months. NBS explained that the annual rate also showed moderation when compared with August 2024, reflecting the impact of the rebased Consumer Price Index (CPI).
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The twelve-month average inflation ending August 2025 stood at 24.66%, down from 31.26% in August 2024.
In the urban index, inflation slowed to 19.75% year-on-year, significantly lower than the 34.58% recorded a year earlier. Rural inflation also dropped to 20.28% year-on-year, down from 29.95% in August 2024.
Food inflation, often the most felt by households, eased sharply to 21.87%, representing a drop of nearly 16 percentage points compared to the 37.52% recorded in August 2024. NBS attributed the decline to slower increases in the prices of staples such as rice, maize, sorghum, millet, semolina, and soya milk.
Core inflation, which excludes volatile items like food and energy, settled at 20.33% in August 2025, compared with 27.58% in August 2024.
READ ALSO: Nigeria’s Inflation Rate Falls to 21.88% in July 2025, Fourth Drop This Year
The Central Bank of Nigeria (CBN) Governor, Mr Olayemi Cardoso, while speaking at the European Business Chamber (Eurocham Nigeria) Forum in Lagos, projected that lending rates, currently between 32% and 36%, could ease as inflation continues to decline and capital allocation becomes more efficient.
At its 301st Monetary Policy Committee (MPC) meeting in July, the CBN retained the Monetary Policy Rate (MPR) at 27.5%.
