Nigeria’s inflation rate fell to 22.22% in June 2025, marking a drop from the 22.97% recorded in May, according to new figures released by the National Bureau of Statistics (NBS) on Wednesday. The latest Consumer Price Index (CPI) report indicates a month-on-month decline of 0.75 percentage points and a significant year-on-year decrease of 11.97 percentage points from the 34.19% recorded in June 2024.

The decline comes amid the implementation of a rebased index, with 2024 as the new base year. While this change contributes to the year-on-year moderation, prices continue to rise at a quicker pace on a monthly basis. Month-on-month inflation increased to 1.68% in June from 1.53% in May, underscoring the persistent pressure on household costs.

Food inflation declined sharply to 21.97% year-on-year in June from 40.87% in the same month of 2024. However, it rose to 3.25% on a month-on-month basis, up from 2.19% in May, driven by higher prices of staples such as tomatoes, pepper, crayfish, plantain flour, and meat. The average annual food inflation rate for the twelve months ending in June was 28.28%, lower than the 35.3% recorded over the corresponding period last year.

Core inflation, which excludes volatile food and energy prices, also declined year-on-year to 22.76% in June from 27.4% in June 2024. On a month-on-month basis, however, it increased to 2.46%, compared to 1.10% in May, highlighting renewed pressure in non-food sectors such as housing, utilities, and transportation.

Urban inflation eased to 22.72% year-on-year in June from 36.55% a year earlier, while rising to 2.11% on a month-on-month basis. The average twelve-month urban inflation rate declined to 28.16%. In rural areas, inflation stood at 20.85% year-on-year, compared to 32.09% in June 2024, while monthly inflation slowed to 0.63% from 1.83% in May. The annual rural inflation average was 24.65%.

At the state level, Borno recorded the highest year-on-year all-items inflation rate at 31.63%, followed by Abuja at 26.79% and Benue at 25.91%. Zamfara recorded the lowest rate at 9.90%, with Yobe and Sokoto at 13.51% and 15.78% respectively. On a monthly basis, Ekiti (5.39%), Delta (5.15%), and Lagos (5.13%) saw the sharpest price increases, while Zamfara, Niger, and Plateau recorded significant price drops of 6.89%, 5.35%, and 4.01% respectively.

Food inflation was highest in Borno at 47.40% year-on-year, followed by Ebonyi and Bayelsa. The slowest food inflation rates were recorded in Katsina, Adamawa, and Sokoto. Month-on-month, food prices rose fastest in Enugu, Kwara, and Rivers, while Borno, Sokoto, and Bayelsa experienced declines.

Key divisions contributing to overall inflation included food and non-alcoholic beverages, transport, housing, electricity, gas, education, healthcare, and clothing. While the easing of year-on-year inflation reflects some macroeconomic adjustment, the continued monthly rise underscores the financial strain on Nigerian households amid a challenging cost-of-living environment.