The National Bureau of Statistics has reported a significant decline in Nigeria's inflation rate, providing relief to households and businesses across the country.
Inflation Trends Show Consistent Improvement
According to the latest Consumer Price Index report released on Monday, Nigeria's headline inflation rate dropped to 16.05 percent in October 2025. This represents the seventh consecutive monthly decline this year, indicating a sustained positive trend in the nation's economic indicators.
The statistics bureau highlighted that the current inflation rate shows remarkable improvement when compared to the same period last year. On a year-on-year basis, the October 2025 rate was 17.82 percent lower than the rate recorded in October 2024, which stood at 33.88 percent.
Monthly and Food Inflation Analysis
While the year-on-year comparison shows significant improvement, the month-on-month data reveals a different picture. The headline inflation rate in October 2025 was 0.93 percent, which represents a 0.21 percent increase compared to September 2025 when the rate was 0.72 percent.
The food inflation sector showed particularly encouraging results. The NBS reported that food inflation rate for October 2025 was 13.12 percent year-on-year, which is 26.04 percent lower than the rate recorded in October 2024 (39.16 percent).
However, on a month-on-month basis, the food inflation rate in October 2025 was -0.37 percent, showing an increase of 1.21 percent compared to September 2025's rate of -1.57 percent.
Regional Variations and Economic Implications
The NBS report provided detailed breakdowns of food inflation across different states. Ogun State recorded the highest food inflation at 20.85 percent, followed by Nasarawa (19.96 percent) and Ekiti (19.70 percent).
Conversely, Akwa Ibom recorded the lowest food inflation at 3.98 percent, with Katsina (4.15 percent) and Yobe (4.29 percent) also showing minimal increases.
The consistent decline in inflation since April this year has enabled the Central Bank of Nigeria to implement monetary policy adjustments. At its September monetary policy committee meeting, the CBN reduced the interest rate to 27 percent - marking the first rate cut in five years.
This positive economic trajectory provides hope for continued stability and growth in Nigeria's economy, though experts caution that monthly fluctuations still require careful monitoring.
