The consecutive decline in Nigeria’s headline inflation for the fifth time has intensified calls for the Central Bank of Nigeria to cut interest rates.
Nigeria’s inflation rate dropped to 21.12 per cent in August 2025. The latest drop represents a 1.79 per cent decrease compared to the N21.88 per cent recorded in July 2025, National Bureau of Statistics data showed.
On a year-on-year basis, the country’s inflation lowered by 12.03 per cent when compared with 32.15 per cent in August last year, indicating the cooling of prices, though technically attributed to the CPI rebase in the earlier part of 2025.
In the same vein, food inflation dropped significantly in August, NBS said.
According to the NBS, the slowdown in prices of imported rice, local rice, millet, semolina, flour, maize and others pushed food inflation to 21.87 per cent, a slight decrease from 21.88 per cent in July.
Nigeria’s positive inflation trend has sparked a call for an interest rate cut from its current 27.50 per cent by the Central Bank of Nigeria’s Monetary Policy Committee.
Recall that the CBN in July retained the interest rate at 27.50 per cent despite calls by manufacturers and stakeholders to cut the country’s monetary policy rate.
