Nigeria’s Inflation Rate Drops to 21.88% in July, Fourth Consecutive Decline

Nigeria’s annual inflation rate eased to 21.88% in July from 22.22% in June, extending its downward trend for the fourth consecutive month, the National Bureau of Statistics (NBS) reported on Friday.

The slowdown comes after the NBS updated the base year for its calculations and reweighted the basket of goods and services used to track price movements — a change that has helped temper the pace of recorded inflation.

Last year, before the rebasing, inflation had surged to more than 34%, its highest in decades.

Food inflation, which remains a key driver of overall price growth, rose slightly to 22.74% year-on-year in July, compared to 21.97% in June, reflecting persistent cost pressures on staples.

The Central Bank of Nigeria (CBN) last month left its benchmark interest rate unchanged at 27.50% for the third time this year, reiterating its commitment to maintaining tight monetary policy until inflation risks diminish.

CBN Governor Olayemi Cardoso, speaking in July, noted that while the latest figures confirmed that inflation was easing, monetary policy decisions would continue to prioritise sustaining the disinflationary momentum.

Economists say the continued moderation in headline inflation could provide some relief for households and businesses, though challenges in food supply and exchange rate stability may keep price pressures elevated in the near term.