nflation Slows to 21.88% in July as New CPI Base Year Takes Effect

As the headline inflation rate for July 2025 dropped to 21.88% from the June 2025 rate of 22.22%, the Consumer Price Index (CPI) increased to 125.9 in July 2025, indicating a 0.34% decrease from June 2025, according to the most recent data released Friday by the National Bureau of Statistics.

The study is focused on a new CPI base year of 2024 and a weight reference period of 2023 once the recent rebasing exercise is finished, according to a statement signed by Prince Adeyemi Adeniran, the Statistician-General of the Federation.

The headline inflation rate for July 2025 dropped to 21.88% from 22.22% in June 2025, it added. This indicates a 0.34% decrease from June 2025.

Food and non-alcoholic beverages accounted for 8.75% of the headline inflation at the divisional level, followed by restaurants and lodging services (2.83%) and transportation (2.33%). Recreation, sport, and culture (0.07%), alcoholic beverages, tobacco, and narcotics (0.08%), and insurance and financial services (0.10%) were the least significant contributors.

In July 2025, the headline inflation rate was 1.99% month over month, 0.31% higher than the rate of 1.68% in June 2025.

“On an annual basis, the food inflation rate in July 2025 was 22.74%. The food inflation rate in July 2025 was 3.12% month over month, 0.14% lower than the rate in June 2025 (3.25%).

The decline can be ascribed to the rate at which the average prices of goods like beans (white), rice, millet whole grain, maize flour, guinea corn (sorghum), vegetable oil, and wheat flour are declining.

When compared year over year, core inflation, which does not include the price of energy and volatile agricultural products, was 21.33% in July 2025. Month-over-month, the core inflation rate decreased 1.49 percentage points from 2.46 in June 2025 to 0.97% in July 2025.

Farm Produce (3.96%), Energy (2.71%), and Goods (2.72%) all had notable increases in inflation, according to the July 2025 sub-indices, which had respective indices of 128.5, 121.2, and 124.6 basis points. In contrast, Services experienced a decrease of 0.47% throughout the course of the month.

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The urban inflation rate in July 2025 was 22.01% on an annual basis. The July 2025 urban inflation rate was 1.86% on a month-over-month basis, which was 0.25% lower than the June 2025 figure of 2.11%.

As compared to the previous year, the rural inflation rate in July 2025 was 21.08%. Rural inflation in July 2025 was 2.30% on a month-over-month basis, up 1.67% from June 2025 (0.63%).

Borno (34.52%), Niger (27.18%), and Benue (25.73%) had the greatest year-over-year inflation rates for the July 2025 all-item index, while Yobe (11.43%), Zamfara (12.75%), and Katsina (15.64%) had the lowest year-over-year increases in headline inflation.

However, borno (6.11%), Zamfara (5.72%), and Kano (4.31%) saw the largest rises in month-over-month inflation in July 2025, while Bauchi (0.26%), Katsina (0.30%), and Anambra (0.37%) saw the lowest increases.

Food inflation on a year-over-year basis increased most in Borno (55.56%), Osun (29.10%), and Ebonyi (29.06%), while Katsina (6.61%), Adamawa (9.90%), and Zamfara (14.72%) saw the slowest increases, according to state-level studies of the food index in July 2025.

On a month-to-month basis, however, food inflation decreased in Zamfara (-6.00%), Bauchi (-2.18%), and Abia (-1.06%) in July 2025, while it was highest in Borno (10.89%), Kano (10.86%), and Sokoto (7.43%).