Nigeria’s headline inflation rate eased to 21.88 percent in July 2025, down from 22.22 percent in June, according to data released by the National Bureau of Statistics. This development marks the fourth consecutive month of disinflation, offering cautious optimism for households and businesses struggling with high costs.
While the year-on-year decline signals progress, the month-on-month inflation rate stood at 1.99 percent in July, compared to 1.68 percent in June. Analysts suggest this rise reflects ongoing short-term pressures, particularly in food and transport costs.
Economists note that the slowdown in inflation is partly due to improved food supply from the harvest season and the Central Bank of Nigeria’s tighter monetary policies aimed at controlling price surges. However, the increase in monthly inflation indicates that Nigerians are still grappling with higher prices of basic goods and services.
Commenting on the development, Dr. Kunle Adebayo, an economist at Lagos Business School, observed that while the trend shows gradual relief, the reality for ordinary citizens remains challenging. “The easing in headline inflation is positive, but it doesn’t mean life has become easier for most Nigerians. Prices are still high, especially for food, energy, and transport,” he said.
The inflationary trend has been a major concern for policymakers in recent years, with rising costs eroding purchasing power and fueling economic hardship. Many households continue to spend a significant portion of their income on food and energy, leaving little room for savings or investment.
Looking ahead, experts warn that inflationary risks remain, particularly if fuel supply chains or food production face disruptions. For now, the gradual decline offers hope that Nigeria may be turning the corner in its battle against rising prices, though sustained policy action will be crucial to maintaining the trend.