Highlights
Nigeria’s Headline Inflation eased for the second consecutive month in May 2025, settling at 22.97%, down from 23.71% in April 2025. This was disclosed in the consumer index report for May 2025, released by the National Bureau of Statistics (NBS). On a month-on-month basis, Headline Inflation slowed to 1.53%, compared to 1.86% in April 2025
Food Inflation, a critical driver of Headline Inflation, printed at 21.14% year-on-year, slightly below the April 2025 figure of 21.26% and far lower than the high base of 40.66% in May 2024 (due to rebasing). However, food Inflation on a month-on-month basis printed at 2.19% compared to 2.06% in April, up by 12 basis points.
Core Inflation (all items less farm produce and energy) slowed further to 22.28% on a year-on-year basis, down from 23.39% in April, lower than 27.04% in May 2024, a decline of 4.76%. On a month-on-month basis, core inflation eased to 1.10%, down by 23 basis points from 1.34% in April 2025.
Outlook
Looking ahead, inflation for June is expected to moderate slightly, supported by currency gains and tighter monetary conditions. However, for the rest of H2 2025, the direction of inflation will depend heavily on sustained FX stability, oil supply to local refineries, and fiscal discipline. Without consistent FX inflows and progress on local fuel production, inflationary pressures may resurface in the second half.
Click here, “May 2025 – Inflation Cooling, But Food Prices Remain Elevated”, to view the full report.
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