Nigeria’s inflation rate falls to 18.02% in September, signals relief for consumers

Nigeria’s headline inflation rate eased to 18.02% in September 2025, down from 20.12% recorded in August, according to the latest figures released by the National Bureau of Statistics (NBS).

The decline marks a notable slowdown in price growth across major sectors and represents one of the most significant drops in inflation in recent months. On a month-on-month basis, inflation stood at 0.72%, reflecting a softer pace of price increases compared to the previous month.

The NBS explained that the slower rate of increase means average prices grew at a lesser rate in September than in August.

Urban and rural inflation trends

The report revealed that urban inflation stood at 17.50% in September 2025, much lower than 35.13% recorded in the same month last year. On a monthly basis, urban inflation rose slightly to 0.74% from 0.49% in August.

Similarly, rural inflation fell to 18.26% from 30.49% recorded in September 2024. Month-on-month, rural inflation eased to 0.67%, down from 1.38% in August.

The twelve-month average inflation rate for urban areas was 24.35%, compared to 33.95% a year earlier, while the rural average stood at 22.08%, down from 29.76%.

Food inflation records sharpest decline

Food inflation, a key driver of overall inflation, dropped sharply to 16.87% year-on-year in September 2025, a major fall from 37.77% in September 2024. The steep decline was partly due to a revision of the base year and a general drop in the prices of staple food items such as maize, beans, garri, potatoes, onions, tomatoes, and pepper.

On a month-on-month basis, the food inflation rate posted -1.57%, meaning average food prices actually decreased in September compared to August.

The twelve-month average for food inflation stood at 24.06%, down from 37.53% recorded during the same period last year.

Core inflation eases further

Core inflation, which excludes volatile food and energy prices, slowed to 19.53% in September 2025, a decline from 27.43% in September 2024. On a month-to-month basis, it inched slightly lower to 1.42% from 1.43% in August.

The average annual core inflation rate for the year ending September 2025 was 22.39%, compared to 25.64% in the same period last year.