Nigeria’s annual inflation rate eased to 20.12 per cent in August from 21.88 per cent in July 2025, the National Bureau of Statistics (NBS) announced on Monday.
According to the NBS, the August 2025 headline inflation rate reflected a 1.76 per cent decrease compared to July’s headline rate.
Inflation indicators measure price changes in goods and services over a 12-month period. A decline, however, does not mean prices are falling — rather, it indicates that the rate of increase in prices has slowed compared to previous months.
On a year-on-year basis, the bureau noted that the headline inflation rate was 12.03 percentage points lower than the figure recorded in August 2024 (32.15 per cent).
“This shows that the headline inflation rate (year-on-year basis) decreased in August 2025 compared to the same month in the preceding year (i.e., August 2024), though with a different base year, November 2009 = 100,” the NBS said.
The bureau added that, on a month-on-month basis, headline inflation stood at 0.74 per cent in August 2025, representing a 1.25 per cent drop from 1.99 per cent in July 2025.
“This means that in August 2025, the rate of increase in the average price level was lower than the rate of increase in the average price level in July 2025,” it explained.
The report also revealed that the food inflation rate in August 2025 was 21.87 per cent year-on-year, which was 15.65 percentage points lower than the 37.52 per cent recorded in August 2024.