Nigeria’s headline inflation rate eased to 21.88% year-on-year in July 2025, down from 22.22% in June, as the early harvest season helped stabilize food prices, according to data and market analysis.
Analysts at FBNQuest attributed the moderation to a high base effect, improved food supply from new harvests, and relative stability in key inflationary drivers.
Despite the year-on-year decline, monthly price growth remained elevated, with headline inflation rising by 1.99% in July compared to 1.68% in June.
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According to BusinessDay, the persistent month-on-month increase reflects ongoing pressures in the food supply chain, driven largely by insecurity in major agricultural regions.
Food inflation also eased, falling to 22.7% year-on-year in July, while core inflation slowed to 0.97% from 3.12% in June.
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However, analysts warn that underlying inflationary risks remain, as structural challenges—particularly in agriculture and logistics—continue to keep price pressures high.
Image Credit: Business Day
