Nigeria’s annual inflation rate fell to 22.97% in May 2025, marking a slight decrease from 23.71% in April, according to the National Bureau of Statistics (NBS).
Inflation Trends and Economic Impact
The latest figures indicate a continued slowdown in price increases, offering some relief amid Nigeria’s ongoing cost-of-living crisis. Inflation had peaked at a 28-year high in 2024, reaching 33.95% in May 2024, before gradually declining.
Key Inflation Drivers
- Food inflation remained a major factor, standing at 21.14% year-on-year, significantly lower than 40.66% in May 2024.
- Urban inflation dropped to 23.14%, down from 36.34% a year earlier.
- Rural inflation also declined to 22.70%, compared to 31.82% in May 2024.
Month-on-Month Inflation Trends
On a month-to-month basis, inflation slowed to 1.53% in May, down from 1.86% in April, indicating that while prices continue to rise, they are doing so at a reduced pace.
Economic Outlook
Analysts attribute the declining inflation to currency stability, lower fuel prices, and government economic reforms. The Naira’s appreciation in the Nigerian Autonomous Foreign Exchange Market (NAFEM) has helped reduce import costs, while monetary tightening and fiscal policies have contributed to price moderation.
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