Nigeria’s headline inflation rate dropped to 18.02% in September 2025, a notable decline from 20.12% recorded in August, according to the National Bureau of Statistics (NBS). The latest data points to a moderation in price growth, marking the lowest inflation level in over a year.
On a month-on-month basis, inflation stood at 0.72%, indicating that prices rose at a slower pace compared to the previous month. The NBS said this reflects “a decrease in the rate of change in the average price level compared to August 2025.”
Urban and rural inflation trends
The report showed that urban inflation fell to 17.50% in September, significantly lower than 35.13% recorded in the same month last year. On a monthly basis, urban inflation increased slightly to 0.74%, up from 0.49% in August.
Rural inflation followed a similar trend, easing to 18.26% from 30.49% in September 2024. Month-on-month, it dropped to 0.67% from 1.38% the previous month.
The average inflation rate over the past twelve months stood at 24.35% for urban areas and 22.08% for rural areas, showing significant declines from 33.95% and 29.76% respectively.
Food inflation shows major improvement
Food inflation, a major driver of Nigeria’s overall inflation, recorded a steep decline to 16.87% in September 2025, compared to 37.77% in September 2024. The sharp fall, the NBS explained, is partly due to a new base year adjustment and lower average prices of key staples such as maize, garri, beans, potatoes, tomatoes, and onions.
Month-on-month, food inflation stood at -1.57%, showing that average food prices actually decreased compared to August 2025. The twelve-month average food inflation rate was 24.06%, down from 37.53% a year earlier.
Core inflation trends
Core inflation - which excludes food and energy costs - eased to 19.53% in September 2025 from 27.43% in September 2024. On a monthly basis, it declined slightly to 1.42%, compared to 1.43% in August.
The average annual core inflation rate was 22.39%, a reduction from 25.64% recorded in the corresponding period of 2024.
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