Our Reporter
Nigeria’s headline inflation rate declined to 16.05 per cent in October 2025, marking the seventh consecutive month of easing price pressures, according to the National Bureau of Statistics.
The NBS disclosed the latest figures in its Consumer Price Index and Inflation Report released on Monday via its verified X (formerly Twitter) handle. The drop represents a notable fall from the 18.02 per cent recorded in September, continuing the downward trajectory that began earlier in the year.
Despite the annual decline, the report noted that inflation rose on a month-on-month basis, with headline inflation increasing by 0.93 per cent in October—up from the 0.72 per cent recorded in September. This indicates that although the overall inflation environment is cooling, short-term price increases remain evident.
The year-on-year headline inflation rate stood at 17.82 per cent, substantially lower than the 33.88 per cent reported in October 2024. The Bureau explained that part of the sharp drop reflects the adoption of a new base year (November 2009), which adjusts historical comparisons.
Food prices ease slightly
Food inflation, a critical indicator for households still grappling with high living costs, moderated on a month-on-month basis. The index fell by 0.37 per cent in October, showing slight relief compared to the previous month.
However, on a monthly basis, food inflation rose by 1.21 percentage points from the -1.57 per cent recorded in September, driven by increases in the prices of items such as onions, oranges, pineapples, shrimp, groundnuts, leafy vegetables and various forms of meat, including goat meat, cow tail and liver.
The annual food inflation rate stood at 13.12 per cent, sharply lower than the 39.16 per cent recorded in October 2024, also influenced by the new base year. The 12-month average food inflation rate eased to 21.96 per cent, down from 38.12 per cent a year earlier.
Urban and rural inflation trends diverge
Urban inflation dropped to 15.65 per cent year-on-year, a significant decline from 36.38 per cent in October 2024. Month-on-month, urban inflation rose to 1.14 per cent, up from 0.74 per cent in September.
Rural inflation also fell year-on-year to 15.86 per cent, compared with 31.59 per cent in October 2024. It moderated to 0.45 per cent on a month-on-month basis, lower than the 0.67 per cent recorded the previous month.
The Bureau noted that both urban and rural indices continue to reflect a broad softening of inflationary pressures across the country, even as short-term fluctuations persist.
A balancing act for policymakers
The continued decline in annual inflation is expected to inform monetary policy decisions as authorities work to stabilise prices, support economic recovery and manage post-reform adjustments. Analysts say the mixed month-on-month movement highlights ongoing supply constraints and seasonal pressures, particularly in the food sector.