Nigeria’s headline inflation slowed to 20.12 per cent in August 2025, the lowest in more than a year, according to data from the National Bureau of Statistics (NBS).

The figure dropped from 21.88 per cent in July and marked the fifth consecutive monthly decline, down sharply from 32.15 per cent in August 2024.

“This easing shows that price increases are beginning to moderate, though challenges remain for many households,” the NBS said in its Consumer Price Index report.

Food inflation also eased to 21.87 per cent year-on-year from 37.52 per cent a year ago, driven by falling prices of staples such as rice, maize flour, millet, and semolina. Still, the bureau noted that insecurity and transport costs keep food expensive in rural areas.

Urban inflation stood at 19.75 per cent, while rural inflation was slightly higher at 20.28 per cent. Core inflation, which excludes food and energy, was 20.33 per cent, but rose month-on-month due to higher costs of housing, electricity, and healthcare.

Across the states, Ekiti recorded the highest inflation at 28.17 per cent, followed by Kano and Oyo, while Zamfara at 11.82 per cent had the lowest.

Analyst David Iweala said, “Yes, the numbers are falling, but many Nigerians are not yet feeling the impact in their pockets. Food and transport costs remain high.”

The report comes ahead of the Central Bank’s Monetary Policy Committee meeting on September 22–23, where members will decide whether to retain or adjust the benchmark interest rate of 27.5 per cent.