Inflation Trends in Nigeria
Inflation in Nigeria has been a pressing concern, but recent data shows a slowdown in the rate of inflation for the third consecutive month. As of June 2025, consumer prices rose year-on-year to 22.22 percent. This decrease in inflation rate offers a potential relief ahead of the Monetary Policy Committee’s (MPC) crucial interest rate decision.
Current Inflation Rate
Nigeria’s headline inflation rate slowed down to 22.22 percent in June 2025 from 22.97 percent in May, according to the National Bureau of Statistics (NBS). However, on a month-on-month basis, inflation declined significantly to 1.68 percent in June from 1.53 percent in May. This indicates a higher pace of price rise across the economy.
Upcoming Monetary Policy Committee Meeting
The Central Bank of Nigeria (CBN) has announced that the 301st meeting of the Monetary Policy Committee (MPC) will take place on Monday, July 21, and Tuesday, July 22, 2025. During the May meeting, the MPC warned that reinflationary pressures were still significant and argued that maintaining elevated interest rates was necessary to mitigate those risks.
Food Inflation
Food inflation declined sharply year-on-year to 21.97 percent in June from 21.14 percent in May. According to the NBS, this sharp decline is largely attributed to base-year effects following the inflation rebasing methodology. However, on a month-on-month basis, food inflation increased marginally to 3.25 percent in June from 2.19 percent in May. The price increase was led by staple foods such as Green Peas (Dried), Pepper (Fresh), Shrimps (white dried), Crayfish, Meat (Fresh), Tomatoes (Fresh), Plantain Flour, Ground Pepper, etc.
Conclusion
The slowdown in inflation rate for the third consecutive month is a positive sign for the Nigerian economy. However, the MPC will need to carefully consider the current inflation trends and make informed decisions about interest rates to maintain economic stability. The upcoming MPC meeting will be crucial in determining the future of Nigeria’s economy, and it will be interesting to see how the committee responds to the current inflation trends.
