Nigeria’s headline inflation rate has eased for the fourth consecutive time, dropping to 21.88% in July 2025 from 22.22% in June 2025, according to the National Bureau of Statistics (NBS).

This decline is attributed to a sharp moderation in core inflation, which decreased by 143 basis points to 21.33% year-on-year.

Key highlights shows food Inflation, increased to 22.74% year-on-year but slowed to 3.12% month-on-month. Core inflation eased to 21.33% year-on-year and 0.97% month-on-month.

The moderation in inflation is expected to continue, driven by sustained naira stability, improved food supply, and moderate energy price increases.

The stability of the naira, trading within the range of N1,520.00/USD to N1,545.00/USD in August, is likely to keep imported goods prices steady and anchor inflation expectations.

The decline in inflation rate may influence the Central Bank of Nigeria’s monetary policy decisions. With the inflation rate expected to maintain its downward trajectory.