In July 2025, the National Bureau of Statistics of Nigeria (NBS) published a report indicating a decrease in the inflation rate. The data reflects ongoing deflation, suggesting an improvement in the country's economic situation.
General Inflation Indicators
The inflation rate in Nigeria in July 2025 stood at 21.88%, a decrease from 22.22% recorded in June 2025. This reduction of 0.34% marks the fourth instance of disinflation in 2025. The Consumer Price Index (CPI) rose to 125.9, up by 2.5 points compared to June's 123.4. Year-on-year, the inflation rate was 11.52% lower than the 33.40% experienced in July 2024.
Regional Inflation Data
According to NBS, the urban inflation rate in July 2025 was 22.01%, which is 13.76% lower than the previous year. In rural areas, the inflation rate was 21.08%, down by 10.17% compared to July 2024. On a month-on-month basis, urban inflation was 1.86%, and rural inflation was 2.30%. Notably, Borno state recorded the highest inflation rate at 34.52% YoY.
Trends in Food Inflation
Food inflation in Nigeria in July 2025 was reported at 22.74%, reflecting a decrease of 16.79% compared to the previous year. Month-on-month, food inflation was 3.12%, down from 3.25% in June 2025. Prices for essential commodities such as vegetable oil and rice have declined, potentially benefiting household budgets.
The decrease in inflation in Nigeria in July 2025 indicates an improvement in the country's economic situation. Nonetheless, rising food inflation and regional disparities remain significant issues that require attention.
