According to the National Bureau of Statistics (NBS), Nigeria’s headline inflation rate decreased to 22.97% in May 2025, a notable drop from 23.71% in April 2025, reflecting a 0.74% reduction. This marks a continued easing of inflationary pressures in the country.
Month-on-Month Inflation Trends
The month-on-month inflation rate for May 2025 was 1.53%, down from 1.86% in April. The NBS attributes this decline to falling prices in key sectors, including food and non-alcoholic beverages (9.20%), accommodation and restaurant services (2.97%), and transportation (2.45%).
Food and Core Inflation Insights
Food inflation recorded a year-on-year rate of 21.14% in May 2025, with a month-on-month increase of 2.19%, driven by price changes in staples like yam, cassava, and sweet potatoes. Meanwhile, core inflation, which excludes volatile agricultural products and energy, stood at 22.28% year-on-year, with a monthly rate of 1.10%, down from 1.34% in April.
Regional Inflation Variations
Inflation rates varied significantly across Nigeria’s states. Borno recorded the highest year-on-year inflation at 38.93%, followed by Niger (34.97%) and Plateau (32.35%). Conversely, Katsina (16.25%), Adamawa (18.20%), and Delta (18.41%) experienced the lowest rates.
CPI Rebasing for Accurate Data
The NBS emphasized the impact of its recent Consumer Price Index (CPI) rebasing, updating the base year to 2024. This adjustment incorporates new sectors and refined data collection methods, ensuring more accurate economic indicators that reflect Nigeria’s evolving economic landscape.
