Nigeria’s inflation rate has declined for the fifth consecutive month, reaching 21.12 percent in August. This decrease is attributed to a drop in food prices, according to the National Bureau of Statistics’ August Consumer Price Index and inflation rate data. The inflation rate eased from 21.88 percent in July 2025, marking a significant decline.

On a month-on-month basis, the country’s inflation rate decreased by 0.74 percent, while the food inflation rate stood at 1.65 percent. This trend is a continuation of the decline observed in recent months. In August 2024, Nigeria’s inflation rate was 32.15 percent, which has now eased to 21.12 percent in the same period this year.

The National Bureau of Statistics reported that the headline inflation rate decreased to 21.12 percent in August 2025, compared to 21.88 percent in July 2025. This decline may influence the Central Bank of Nigeria’s Monetary Policy Committee to reassess the interest rate, currently at 27.50 percent, during its next meeting. The committee may choose to retain the current interest rate and other parameters or consider a reduction.

The decline in inflation rate is a positive development for Nigeria’s economy, indicating a potential decrease in the cost of living for citizens. The drop in food prices is a key factor contributing to this trend. As the country’s economy continues to evolve, the National Bureau of Statistics will closely monitor inflation rates and provide updates on the country’s economic performance.

The decrease in inflation rate may have implications for the country’s monetary policy and economic growth. The Central Bank of Nigeria’s decision on the interest rate will be crucial in determining the trajectory of the economy. With the current decline in inflation rate, the country may be moving towards a more stable economic environment, which could have a positive impact on businesses and individuals alike.