Nigeria's food inflation rate has declined for the second consecutive month to 21.14 percent in May 2025, down from 21.26 percent in April 2025, according to the latest Consumer Price Index released by the National Bureau of Statistics (NBS) on Monday.
Similarly, the country's headline inflation dropped to 22.97 percent in May from 23.71 percent recorded in the previous month, marking a continued downward trend in Africa's most populous nation.
"The food inflation rate in May 2025 was 21.14% on a year-on-year basis," the NBS stated in its report.
Inflation Decline Despite Economic Challenges
The drop in both headline and food inflation figures comes as a surprising development amid soaring prices of essential goods across the country. Economic analysts note that this consecutive decline could signal the beginning of a positive trend in Nigeria's battle against rising costs of living.
Following April's inflation drop, the Monetary Policy Committee of the Central Bank of Nigeria maintained the interest rate at 27.50 percent, suggesting confidence in the current monetary policy approach to managing inflation.
Economic Implications
The consecutive decline in inflation rates could potentially ease pressure on household budgets, though many Nigerians continue to grapple with high costs of food items and other essentials. Market surveys indicate that prices of staple foods remain significantly higher than they were a year ago, despite the statistical improvements.
Economic experts suggest that sustained decreases in inflation over several months would be necessary before consumers feel meaningful relief in their daily purchases.
The government's economic policies, including recent fiscal measures and agricultural initiatives, may be contributing factors to the inflation decline, though their full impact remains to be seen in the coming months.
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