Nigeria’s inflation rate has decreased to 20.12% in August 2025, down from 21.88% in July, according to the National Bureau of Statistics. Despite this drop, the Chief Economist at SPM Professionals, Paul Alaje, notes that the prices of commodities remain relatively high. The latest figures indicate a 1.76% decrease in the inflation rate compared to the previous month.

The reduction in inflation can be attributed to a slight decrease in the prices of some food items. However, Alaje emphasizes that the decrease is not as significant as some reports suggest, and may be influenced by political factors. He also points out that household items are still expensive, with food inflation remaining in double digits.

The National Bureau of Statistics reports that the monthly headline inflation rate stood at 0.74% in August, while food inflation was 1.65%. On a year-on-year basis, inflation decreased by 12.03% compared to August 2024, when it was 32.15%. Alaje observes that there is a slight reduction in rural-urban inflation, which may indicate a more even distribution of price changes across different regions.

The decrease in inflation is a positive development, but the fact that it remains in double digits is a concern. The Nigerian government has previously expressed optimism that inflation will drop to single digits. However, Alaje’s comments suggest that this goal may not be achieved soon. As the country continues to grapple with economic challenges, the trend of inflation will be closely watched by policymakers, businesses, and consumers alike.

The latest inflation figures provide some relief, but also highlight the need for continued efforts to control prices and promote economic growth. As Nigeria’s economy evolves, it is essential to monitor inflation trends and their impact on the population. The government and economic stakeholders must work together to address the underlying factors driving inflation and ensure that the benefits of economic growth are shared by all.