Abuja: Nigeria’s headline inflation rate eased to 21.88% in July 2025, according to the National Bureau of Statistics (NBS). This information was revealed in the Consumer Price Index (CPI) and Inflation Report for July 2025, released in Abuja.
According to News Agency of Nigeria, the report indicated a 0.34% decrease in the headline inflation rate compared to the 22.22% recorded in June 2025. On a month-on-month basis, the headline inflation rate in July 2025 was 1.99%, 0.31% higher than June’s 1.68%.
The report attributes the increase in the headline index for July 2025 to the rise in prices of items in the basket of goods and services at the divisional level. The primary contributors to the headline inflation were Food and Non-Alcoholic Beverages at 8.75%, Restaurants and Accommodation Services at 2.83%, and Transport at 2.33%. In contrast, the least contributors were Recreation, Sport, and Culture at 0.07%, Alcoholic Beverages, Tobacco, and Narcotics at 0.08%, and Insurance and Financial Services at 0.10%.
The food inflation rate in July 2025 was 22.74% year-on-year, a significant decline of 16.79 percentage points compared to July 2024’s 39.53%. The report noted that the significant decline was due to a change in the base year. Month-on-month, the food inflation rate was 3.12%, a 0.14% decrease from June 2025’s 3.25%.
The decrease in food inflation was linked to the reduction in average prices of items such as Vegetable Oil, Bean (White), Rice Local, Maize Flour, Guinea Corn (Sorghum), Wheat Flour, and Millet Whole grain. The core inflation, which excludes prices of volatile agricultural produce and energy, stood at 21.33% year-on-year in July 2025. Month-on-month, the Core Inflation rate was 0.97%, a decrease of 1.49% from June 2025’s 2.46%.
The inflation rate of the sub-indices showed that Farm Produce stood at 3.96%, Energy at 2.71%, and Goods at 2.72%, compared to June’s -13.3%, -11.0%, and 0.93%, respectively. Despite the increases, Services recorded a decline in July to 0.47%, compared to June’s 3.26%.
The urban inflation rate in July 2025 was 22.01% year-on-year, with a month-on-month rate of 1.86%, a 0.25% decrease from June’s 2.11%. The Rural Inflation Rate was 21.08% year-on-year, and month-on-month, it was 2.30%, a 1.67% increase from June’s 0.63%.
On a state-by-state basis, the all-items index inflation rate was highest in Borno at 34.52%, followed by Niger at 27.18%, and Benue at 25.73%. The slowest rise in headline inflation was in Yobe at 11.43%, followed by Zamfara at 12.75%, and Katsina at 15.64%. Month-on-month, Borno recorded the highest inflation rate at 6.11%, followed by Zamfara at 5.72%, and Kano at 4.31%. Bauchi, Katsina, and Anambra saw the slowest rise in month-on-month inflation at 0.26%, 0.30%, and 0.37% respectively.
Year-on-year, food inflation was highest in Borno at 55.56%, followed by Osun at 29.10%, and Ebonyi at 29.06%. The slowest rise in food inflation was recorded in Katsina at 6.61%, followed by Adamawa at 9.90%, and Zamfara at 14.72%. On a month-on-month basis, Borno recorded the highest food inflation at 10.89%, followed by Kano at 10.86%, and Sokoto at 7.43%. Zamfara, Bauchi, and Abia recorded the slowest rise in month-on-month food inflation at -6.00%, -2.18%, and -1.06% respectively.
The NBS report noted that the recent rebasing of the CPI showed an increase to 125.9 in July 2025, reflecting a 2.5-point increase from June 2025.