Market News

BY James Emejo in Abuja

The Consumer Price Index (CPI) which measures the rate of change in prices of goods and services, dropped to 20.12 per cent in August compared to 21.88 per cent in the preceding month, the National Bureau of Statistics (NBS) said Monday. Year on year, headline inflation stood at 12.03 per cent lower than 32.15 per cent in August 2024. 

According to the CPI Report for the month under review, inflation decreased in August compared to the same month in the preceding, albeit after rebasing. Month on month, headline inflation stood at 0.74 per cent, lower than 1.99 per cent in July. Food inflation dropped to 21.87per cent year on year in August compared to 37.52 per cent in the corresponding period of 2024. 

The NBS however, explained that the significant decline in annual food inflation was technically due to the change in the base year. Nonetheless, the food index dropped to 1.65 per cent month on month in August compared to 3.12 per cent in July. 

The statistical agency further attributed the decrease to reduction in average prices of imported and local rice, guinea corn flour, maize flour sold loose, guinea corn (sorghum), millet, semolina, soya milk among others. Also, the average annual rate of food inflation for the 12 months ending August 2025 over the previous 12-month average was 25.75 per cent compared to 36.99 per cent in August 2024.

Core inflation, which excludes the prices of volatile agricultural produces and energy dropped to 20.33 per cent year on year in August, decline of 7.25 per cent compared to 27.58 per cent recorded in August 2024. Month-on-month, the core index however, rose to 1.43 per cent compared to July 0.97 per cent in July. 

The average 12-month annual inflation rate was 23.04 per cent for the 12 months ending August 2025. This was 2.14 per cent lower than the 25.18 per cent recorded in August 2024, according the NBS.

Details later…