Headline inflation rate falls to 21.88%

As per the National Bureau of Statistics‘ (NBS) Consumer Price Index (CPI) Report for July 2025, Nigeria’s headline inflation rate decreased to 21.88% in July 2025, down from 22.22% in June 2025, reflecting a month-on-month drop of 0.34 percentage points. Year-on-year, the headline inflation rate was 11.52 percentage points lower than the 33.40% noted in July 2024.

Additionally, the food inflation rate was recorded at 22.74% year-on-year, which is 16.79 percentage points less than the 39.53% seen in July 2024. This reduction is primarily attributed to the adjustment in the CPI base year, while on a month-on-month basis, it slightly eased to 3.12% from 3.25% in June 2025, driven by slower price increases in vegetable oil, beans, rice, maize flour, sorghum, wheat flour, and millet.

Likewise, the urban inflation rate was at 22.01% compared to 35.77% in July 2024, while the rural inflation rate was 21.08%, down from 31.26% during the same period last year. However, on a month-on-month basis, the urban inflation rate fell to 1.86% in July from 2.11% in June, whereas the rural inflation rate surged to 2.30% from 0.63% in June, highlighting ongoing supply and transport issues in rural regions.

The decrease in both headline and food inflation rates suggests some price stability, especially in urban areas; however, the increase in rural inflation indicates persistent challenges regarding food access, transport, and distribution. Consequently, the report indicates that inflation relief is not uniform, leaving rural households vulnerable.

It underscores the necessity for the government to invest in rural infrastructure, enhance food supply chains, and support smallholder farmers to ensure that price stability is widespread and sustainable. Furthermore, the government should implement safety nets for the rural population to mitigate the effects of inflation, to which they are particularly susceptible.