Nigeria’s inflation rate dropped to 22.22% in June 2025, marking the third consecutive month of decline, according to the latest Consumer Price Index (CPI) report released by the National Bureau of Statistics (NBS). The decline from May’s 22.97% figure signals a positive trend in headline inflation, even as food prices remain on the rise.
The CPI report indicates that while year-on-year inflation eased significantly—falling 11.97 percentage points from 34.19% in June 2024—month-on-month figures paint a more complex picture. The June 2025 inflation rate rose by 1.68% compared to 1.53% in May, suggesting ongoing price pressures at the consumer level.
One of the key concerns highlighted in the report is the persistent increase in food prices. Month-on-month food inflation climbed to 3.25% in June from 2.19% in May, driven by rising costs of staples such as tomatoes, green peas, fresh meat, and ground pepper. Year-on-year food inflation stood at 21.97%, significantly lower than the 40.87% recorded in June 2024, though the report attributes this drop largely to changes in the statistical base year.
Economic analysts, including the Centre for the Promotion of Private Enterprise (CPPE), welcomed the continued drop in headline inflation but cautioned that core inflation and food price trends remain worrisome. The CPPE’s Director, Dr. Muda Yusuf, said recent figures call for more focused economic interventions, especially on trade and import policies.
“Despite a relatively stable exchange rate, the cost of imported inputs remains high. We need to recalibrate our tariff structure and revisit the import duty exchange rate to support local production and reduce trade costs,” Yusuf advised.
He also noted that while government investments in agriculture are commendable, a new challenge is emerging as Nigerian food products become cheaper for neighboring countries due to currency differences. “This surge in cross-border demand is straining domestic supply. We must scale up local production to meet both local and external demand,” he added.
According to the NBS report, the highest year-on-year inflation rates were recorded in Borno (31.63%), Abuja (26.79%), and Benue (25.91%), while Zamfara (9.90%), Yobe (13.51%), and Sokoto (15.78%) saw the lowest. For food inflation specifically, Borno topped the chart with 47.40%, followed by Ebonyi and Bayelsa.
Urban and rural inflation rates also diverged. Urban inflation stood at 22.72%, while rural inflation was slightly lower at 20.85%. On a month-on-month basis, urban inflation rose to 2.11%, up from 1.40% in May. Rural inflation, on the other hand, declined slightly to 0.63% from 1.83% the previous month.
As inflation trends continue to shift, policymakers face the dual challenge of sustaining the downward trajectory in headline inflation while addressing the rising cost of living for millions of Nigerians.
