Nigeria’s inflation rate has recorded its second consecutive monthly decline, dropping to 22.97% in May 2025 from 23.71% in April, according to the National Bureau of Statistics (NBS). This downward trend is a welcome development for consumers and policymakers alike, suggesting that efforts to stabilize the economy are beginning to yield positive results.
The decline in inflation rate can be attributed to several factors, including the stabilization of the macroeconomic environment, a drop in fuel prices, and reduced food costs. Food inflation slowed year-on-year to 21.14% in May, down from 21.36% in April, contributing to the overall decline in inflation rate.
While the decline in inflation rate is a positive development, prices of essential goods remain high, and consumers are yet to feel the full impact of this relief. According to experts, the lived reality for millions of Nigerians hasn’t changed, with bread, rice, and transport still consuming a significant portion of monthly income.
On a year-on-year basis, food inflation was highest in Benue, Ekiti, and Kebbi, while Ebonyi, Adamawa, and Ogun recorded the slowest rise. On a month-on-month basis, food inflation was highest in Benue, Ekiti, and Yobe.
Economists warn that without structural reforms, any easing of inflation will be short-lived. Insecurity in major food-producing regions and early seasonal flooding in the Middle Belt continue to disrupt supply chains, posing a risk to the current trend.
Overall, while the decline in inflation rate is a positive development, sustained efforts are needed to address the underlying structural issues driving inflation and ensure long-term economic stability
