NBS: Inflation rate nose dives by 1.76% to settle down to 20.12% in August
By Patience Ikpeme
Headline inflation eased down in August 2025 to 20.12% relative to the July 2025 headline inflation rate of 21.88%, National Bureau of Statistics (NBS) disclosed on Monday.
NBS said August inflation rate showed a decrease of 1.76% compared to the July 2025 Headline inflation rate. On a year-on-year basis, the headline inflation rate was 12.03% lower than the rate recorded in August 2024 (32.15%).
“This shows that the headline inflation rate (year-on-year basis) decreased in August 2025 compared to the same month in the preceding year (i.e., August 2024), though with a different base year, November 2009 = 100.
On a month-on-month basis, the headline inflation rate in August 2025 was 0.74%, which was 1.25% lower than the rate recorded in July 2025 (1.99%). This means that in August 2025, the rate of increase in the average price level was lower than the rate of increase in the average price level in July 2025.
In the month under review (August) food inflation rate was 21.87% on a year-on-year basis, indicating 15.65% points lower compared to the rate recorded in August 2024 (37.52%).
“The significant decline in the annual food inflation figure is technically due to the change in the base year. On a month-on-month basis, the Food inflation rate in August 2025 was 1.65%, down by 1.47% compared to July 2025 (3.12%). The decrease can be attributed to the rate of decline in the average prices of Rice (Imported), Rice (local), Guinea corn flour, Maize flour sold loose, Guinea Corn (Sorghum), Millet, Semolina, Soya milk etc.
The average annual rate of food inflation for the twelve months ending August 2025 over the previous twelve-month average was 25.75%, which was 11.24% points lower compared with the average annual rate of change recorded in August 2024 (36.99%)”, NBS disclosed.
On core inflation, which excludes the prices of volatile agricultural produces and energy, it stood at 20.33% in August 2025 on a year-on-year basis; a decline of 7.25% when compared to the 27.58% recorded in August 2024. On a month-on-month basis, the core Inflation rate was 1.43% in August 2025, up by 0.46% compared to July 2025 (0.97%).
Inflation varies across states. In August 2025, all Items inflation rate on a Year-on-Year basis was highest in Ekiti (28.17%), Kano (27.27%), and Oyo (26.58%), while Zamfara (11.82%), Anambra (14.16%) and Enugu (14.20%) recorded the lowest rise in Headline inflation on a Year-on-Year basis.
On a Month-onMonth basis, however, August 2025 recorded the highest increases in Yobe (9.20%), Katsina (8.59%) and Sokoto (6.57%), while Enugu (-5.32%), Taraba (-3.64%), and Nasarawa (-3.56%) recorded decline in month-on-month inflation. Food inflation
Food Inflation on a Year-on-Year basis was highest in Borno (36.67%), Kano (30.44%), Akwa Ibom (29.85%), while Zamfara (3.30%), Yobe (3.60%), and Sokoto (6.34%) recorded the slowest rise in Food inflation on Year-on-Year basis.
“On a month-on-month basis, however, August 2025 food inflation was highest in Kaduna (9.37%), Katsina (9.05%), Akwa Ibom (7.87%), and while Bayelsa (-9.52%), Sokoto (-8.92%), and Borno (-8.74%) recorded decline in food inflation on month-on-month basis.
