Nigeria’s Inflation Rate Falls to 22.97% in May 2025

Inflation Rate

Nigeria’s Headline Inflation Rate dropped to 22.97% in May 2025, reflecting a significant slowdown from the 33.95% recorded in May 2024—a year-on-year decline of 10.98 percentage points, according to newly released inflation data.

The month-on-month inflation figure also showed improvement, standing at 1.53% in May 2025—0.33% lower than the 1.86% recorded in April. This indicates a reduced pace in the increase of average price levels compared to the previous month.

According to Daily Reports, the latest inflation figures are calculated using a new base year of 2024, unlike the 2009 base previously used in 2024 inflation computations.

The report also highlighted a 12-month average inflation rate of 27.55% for the period ending in May 2025, down from 29.06% in the previous 12 months—a decline of 1.51 percentage points.

Food Inflation Still High Month-on-Month

While headline inflation showed improvement, food inflation rose slightly on a monthly basis. In May 2025, it climbed to 2.19%, a 0.12% increase from April’s 2.06%.

The rise in food inflation was linked to declining prices in key food items such as yam, ogbono (wild mango seed), cassava tuber, maize flour, fresh pepper, and sweet potatoes.

However, the year-on-year food inflation rate saw a steep decline to 21.14% in May 2025, which is 19.52 percentage points lower than the 40.66% recorded in May 2024.

The sharp drop was largely attributed to the change in the base year used in calculating the Consumer Price Index (CPI).

The average food inflation rate over the 12-month period ending May 2025 stood at 29.80%, representing a 4.26 percentage point drop from the 34.06% recorded during the same period in 2024.

Daily Trust

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