Nigeria’s inflation rate has taken a slight dip, with the headline inflation rate easing to 22.97% in May 2025, according to the National Bureau of Statistics (NBS). This marks a 0.74% decrease from the 23.71% recorded in April 2025. The NBS revealed this in its Consumer Price Index (CPI) and Inflation Report for May 2025, which was released in Abuja.
On a month-on-month basis, the headline inflation rate for May 2025 was 1.53%, a 0.33% drop from the 1.86% recorded in April 2025. The increase in the headline index was attributed to the rise in prices of certain items in the basket of goods and services. Food and non-alcoholic beverages, restaurants and accommodation services, and transport were the top contributors to the headline inflation, with rates of 9.20%, 2.97%, and 2.45%, respectively.
Food inflation also saw an increase, with a year-on-year rate of 21.14% in May 2025. This was driven by the reduction in average prices of items like yam, cassava tuber, and maize flour. Core inflation, which excludes the prices of volatile agricultural produce and energy, stood at 22.28% in May 2025, a decrease of 0.24 percentage points from the 1.34% recorded in April 2025.
The report also highlighted regional variations in inflation rates. Urban inflation was highest in Borno at 38.93%, followed by Niger and Plateau, while Katsina recorded the slowest rise in headline inflation at 16.25%. On a month-on-month basis, Bayelsa saw the highest inflation rate at 9.11%, while Kaduna recorded the slowest rise at -6.75%.
The NBS recently rebased the CPI, updating the base year from 2009 to 2024, with 2023 as the reference period for expenditure weights. According to the Statistician-General of the Federation, Adeyemi Adeniran, this was done to ensure that Nigeria’s economic indicators accurately reflect the current structure of the economy. The rebasing has resulted in a 1.83-point increase in the CPI, which rose to 121.35 in May 2025.
The inflation report provides valuable insights into Nigeria’s economic trends and highlights the need for continued monitoring and management of inflation rates. As the country navigates its economic landscape, it is essential to stay informed about the latest developments and trends in the inflation rate.
