Inflation Rate Drops in August As Report Shows Relief for Nigerians

• The NBS has revealed that inflation rates declined further in August, extending the downward trend to five straight months
• The latest data showed that both headline and food inflation eased on a year-on-year and month-on-month basis
• Headline inflation was lowest in Zamfara, Anambra, and Enugu, while the highest was recorded in Ekiti, Kano, and Oyo states

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The National Bureau of Statistics (NBS) has revealed that Nigeria’s inflation rate slowed further in August 2025.

According to the bureau in its latest CPI report, the headline inflation dropped to 20.12% from 21.88% in July 2025.

While the year-on-year inflation rate was 12.03 percentage points lower than the 32.15% recorded in August 2024.

On a month-on-month basis, inflation stood at 0.74% in August, down from 1.99% in July, showing that prices rose at a slower pace than the previous month.

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Urban vs rural Inflation

NBS noted that urban inflation stood at 19.75% year-on-year, down from 34.58% in August 2024, while rural inflation was 20.28%, compared with 29.95% in the same period last year.

On a monthly basis, urban inflation slowed to 0.49% in August from 1.86% in July, while rural inflation eased to 1.38% from 2.30%.

Food Inflation

Food inflation dropped to 21.87% year-on-year in August, down sharply from 37.52% in August 2024.

On a monthly basis, food prices rose by 1.65%, lower than the 3.12% recorded in July.

The NBS attributed the moderation to slower price increases in rice (local and imported), maize flour, guinea corn, millet, semolina, and soya milk.

The twelve-month average for food inflation was 25.75%, compared with 36.99% in August 2024.

State Breakdown – All Items

The states with the highest all-items inflation rates were:

• Ekiti (28.17%)
• Kano (27.27%)
• Oyo (26.58%)

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The lowest rates were recorded in:

• Zamfara (11.82%)
• Anambra (14.16%)
• Enugu (14.20%)

On a month-on-month basis, the highest increases were in Yobe (9.20%), Katsina (8.59%), and Sokoto (6.57%), while declines were seen in Enugu (-5.32%), Taraba (-3.64%), and Nasarawa (-3.56%).

State Breakdown – Food Inflation

Food inflation was highest in:

• Borno (36.67%)
• Kano (30.44%)
• Akwa Ibom (29.85%)

The lowest food inflation rates were seen in:

• Zamfara (3.30%)
• Yobe (3.60%)
• Sokoto (6.34%)

Month-on-Month food inflation

The states with the highest month-on-month increases in food inflation were:

• Kaduna (9.37%)
• Katsina (9.05%)
• Akwa Ibom (7.87%)

The states that recorded declines were:

• Bayelsa (-9.52%)
• Sokoto (-8.92%)
• Borno (-8.74%)

Farmers name those responsible for high rice prices

Earlier, Legit.ng reported that Nigerian rice farmers have accused middlemen and cartels of driving the sharp rise in the price of the staple.

The farmers alleged that these middlemen are hoarding and profiteering, which is why government efforts to stabilise the market have not yielded results.

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A 50kg bag of local rice is now selling for over N80,000, according to data published by a financial derivatives company

Source: Legit.ng