(3 Minutes Read)
The National Bureau of Statistics (NBS) has announced that Nigeria’s headline inflation rate declined for the second consecutive month, easing to 22.97% in May 2025, down from 23.71% recorded in April 2025. This was disclosed in the latest Consumer Price Index (CPI) and Inflation Report, released in Abuja on Monday, June 17.
According to the NBS, the 0.74 percentage point decline in the headline inflation rate marks a continuing trend of price moderation in the country. On a month-on-month basis, the inflation rate also showed a downward movement, standing at 1.53% in May, compared to 1.86% in April—a decrease of 0.33 percentage points.
The report attributed the overall increase in prices (despite the slower growth) to certain goods and services at the divisional level. The main drivers of inflation were:
- Food and Non-Alcoholic Beverages: 9.20%
- Restaurants and Accommodation Services: 2.97%
- Transport: 2.45%
In contrast, sectors contributing the least to the headline inflation rate included:
- Recreation, Sports, and Culture: 0.07%
- Alcoholic Beverages, Tobacco, and Narcotics: 0.09%
- Insurance and Financial Services: 0.11%
Food inflation remained significant. On a year-on-year basis, it stood at 21.14% in May. On a month-on-month basis, food inflation rose slightly to 2.19%, up by 0.13 percentage points from 2.06% in April. The core inflation rate—which excludes volatile items like agricultural produce and energy—stood at 22.28% year-on-year. On a monthly basis, core inflation fell to 1.10%, down from 1.34% in April.
In its updated CPI framework, the NBS introduced sub-indices to offer deeper insights into inflation trends. On a month-to-month basis:
- Farm Produce inflation was 22.38%
- Goods inflation stood at 9.39%
In contrast:
- Services inflation was 1.79%
- Energy prices declined by -0.43%, down from a massive 13.6% increase in April
Urban inflation stood at 23.14% year-on-year, with a month-on-month increase of 1.40% (up from 1.18% in April). Rural inflation was slightly lower, at 22.70% year-on-year. However, rural areas experienced a steeper drop in monthly inflation, recording 1.83%, a significant decline from 3.56% in April.
The May report also reflects Nigeria’s newly rebased CPI, a significant statistical update aimed at improving accuracy. The base year has been updated from 2009 to 2024, with 2023 as the new reference for consumption patterns. As a result, the CPI rose to 121.35 points in May—an increase of 1.83 points from April.
Adeyemi Adeniran, the Statistician-General of the Federation, explained that the rebasing was necessary to account for:
- Emerging sectors of the economy
- Updated consumption patterns
- Improved data collection methodologies
He emphasised that the new framework is designed to provide a more realistic reflection of Nigeria’s evolving economic landscape.
Read Also:
https://trendsnafrica.com/nigerias-inflation-increases-consecutively-in-four-months/
The latest inflation figures suggest tentative progress in stabilising prices, even as food and regional disparities remain challenges. The rebased CPI promises to offer more precise and relevant economic data for policy formulation moving forward.
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