Highlights

Nigeria’s Headline Inflation rate eased for the fifth consecutive month in August 2025, moderating to 20.12% from 21.88% recorded in July 2025, reflecting a continued deceleration in price pressures within a relatively stable macroeconomic environment. This trend was consistent with year-on-year declines in key inflation components — Food Inflation and Core Inflation. Additionally, on a month-on-month basis, Headline Inflation dropped significantly to 0.74% in August from 1.99% in July. The notable monthly decline was largely driven by lower energy costs and the onset of the harvest season, which significantly eased food price pressures.

Outlook

We project that the disinflationary trend will extend into September 2025, marking a sixth consecutive month of moderation. This outlook is supported by favourable supply-side dynamics, particularly the ongoing harvest season, which should sustain growth in agricultural output and ease food price pressures, alongside the recent appreciation of the naira, which is helping to dampen imported inflation.

Click here, “August 2025 – Harvest Season to Sustain Inflation Decline into September”, to view the full report.