Analysts Forecast Further Drop in Nigeria’s October Inflation

Economic analysts have projected a continued decline in Nigeria’s headline inflation rate for October 2025, with forecasts ranging between 16.20 percent and 17.76 percent, signaling a potential easing of price pressures across the country.

The anticipated drop follows a slight moderation in September, when the National Bureau of Statistics (NBS) reported headline inflation at 18.02 percent. Analysts attribute the projected decline to several key factors, including improved food supply during the harvest season, relative stability in the foreign exchange market, and the base-effect from higher prices recorded in the corresponding period last year.

According to experts, these factors are expected to help reduce the cost of staples and imported goods, providing some relief to households that have faced sustained high prices in recent months.

They also noted that a moderation in inflation could provide the Central Bank of Nigeria (CBN) with greater flexibility in monetary policy, potentially creating room for interest rate adjustments that support economic growth.

However, analysts caution that risks remain, particularly from rising energy and transportation costs, which could slow the pace of the decline or reverse gains.

They emphasized that while the projected inflation drop is positive, prices in Nigeria remain elevated, and further policy measures and market interventions may be necessary to achieve more moderate inflation levels.

Investors and market watchers are also closely monitoring the situation, as declining inflation could influence interest rates, real returns on investments, and overall market confidence.

The official inflation figure for October will be released by the NBS in the coming weeks, providing a clearer picture of the country’s economic trajectory.