Economy News Correspondent
Ruth Ogbechie
In a modest but noteworthy development, Nigeria’s inflation rate has eased slightly, falling to 22.22% in June 2025 from 22.47% recorded in May, according to new data released by the National Bureau of Statistics (NBS). The decline marks the first time in several months that the country’s inflation rate has shown signs of slowing, offering a flicker of hope to consumers and policymakers battling persistent price increases.
The report revealed that while food and core inflation remain elevated, the marginal drop in headline inflation is attributed to improved supply chains, marginal naira stability, and reduced fuel price volatility in some parts of the country. The development has sparked cautious optimism among economists and government officials, though many warn that Nigeria is not out of the woods yet.
Food Still Drives Inflation
Despite the overall decline, food inflation remains stubbornly high, standing at over 30% year-on-year. The continued rise in the cost of food items such as grains, tubers, meat, and dairy products continues to strain household budgets, particularly among low-income earners. Factors such as insecurity in farming regions, transport costs, and post-harvest losses remain major challenges.
“The food index continues to exert significant pressure on the overall inflation numbers. Although there has been a slight easing, Nigerians are still facing serious hardship when it comes to basic nutrition,” said Dr. Tolu Olatunji, a Lagos-based economist.
Government Response
Reacting to the report, the Central Bank of Nigeria (CBN) reiterated its commitment to pursuing policies aimed at price stability. The bank has maintained a tight monetary policy stance in recent months, increasing the benchmark interest rate in an effort to tame inflation. With the latest figures showing a downward trend, some analysts believe the CBN might maintain rates or adopt a wait-and-see approach.
Meanwhile, the Federal Ministry of Finance has welcomed the new data, describing it as a sign that ongoing economic reforms are beginning to take effect. “We are encouraged by this decline. It shows that the fiscal and monetary measures we are implementing are working. However, we remain focused on sustaining this trend and making life more affordable for Nigerians,” said a ministry spokesperson.
Mixed Reactions from Citizens
On the streets, many Nigerians say they have yet to feel the impact of the reported improvement. “They keep saying inflation is going down, but everything in the market is still expensive,” said Blessing Okechukwu, a trader in Abuja. “Even transport and school fees have gone up.”
Others, however, express cautious optimism, noting that prices for some commodities, like cooking oil and rice, have stabilized or slightly reduced in recent weeks.
Outlook Remains Uncertain
While the latest figures signal a positive direction, experts warn that Nigeria’s inflation outlook remains fragile. Factors such as global oil price volatility, foreign exchange scarcity, insecurity in food-producing regions, and climate change could still reverse the gains made.
Going forward, sustained policy coordination, investment in local production, improved security, and better fiscal discipline are seen as essential steps to curb inflation sustainably and improve the economic well-being of Nigerians.
For now, the dip to 22.22% offers some breathing space—but not yet a breakthrough.
