Inflation in Nigeria Continues Downward Trend, Reaching 22.97% in May with Substantial Year-on-Year Drop

Nigeria’s headline inflation rate eased to 22.97% in May 2025, down from 23.71% recorded in April, reflecting a 0.74% decrease

According to the latest data released by National Bureau of Statistics (NBS), this marks a notable drop from the 33.95% rate recorded in May 2024, representing a year-on-year decline of 10.98 percentage points.

The Consumer Price Index (CPI), which measures the average change in the price level of goods and services, rose to 121.35 in May 2025—an increase of 1.83 points compared to April.

On a month-on-month basis, inflation in May stood at 1.53%, representing a slowdown from the 1.86% recorded in April. This suggests a moderation in the pace at which consumer prices are rising in Nigeria.

Urban Inflation

On a year-on-year basis, in May 2025, the urban inflation rate was 23.14%, 13.20% points lower compared to the 36.34% recorded in May 2024. On a month-on-month basis, the urban inflation rate was 1.40% in May 2025, up by 0.22% compared to April 2025 (1.18%). The corresponding twelve-month average for the urban inflation rate was 29.30% in May 2025. This was 1.77% points lower compared to the 31.07% reported in May 2024.

Rural Inflation

The Rural inflation rate in May 2025 was 22.70% on a year-on-year basis. This was 9.12% points lower compared to the 31.82% recorded in May 2024. On a month-on-month basis, the rural inflation rate in May 2025 was 1.83%, down by 1.72% compared to April 2025 (3.56%). The corresponding twelvemonth average for the rural inflation rate in May 2025 was 25.56%. This was 1.71% points lower compared to the 27.27% recorded in May 2024.

Food Inflation

The Food inflation rate in May 2025 was 21.14% on a year-on-year basis. This was 19.52% points lower compared to the rate recorded in May 2024 (40.66%). 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 May 2025 was 2.19%, up by 0.12% compared to April 2025 (2.06%). The increase can be attributed to the rate of decrease in the average prices of Yam, Avenger (Ogbono/Apon), Cassava Tuber, Maize Flour, Fresh Pepper, Sweet Potatoes, etc.

Core inflation

The Core inflation, which excludes the prices of volatile agricultural produces and energy, stood at 22.28% in May 2025 on a year-on-year basis; declined by 4.76% when compared to the 27.04% recorded in May 2024. On a month-on-month basis, the Core Inflation rate was 1.10% in May 2025, down by 0.23% compared to April 2025 (1.34%). The average twelve-month annual inflation rate was 24.51% for the twelve months ending May 2025, which was 1.06% points higher than the 23.45% recorded in May 2024.