Market News

Inflation in Nigeria slowed for the third consecutive month in June, with consumer prices rising year-on-year  to 22.22 percent, offering a potential relief ahead of the Monetary Policy Committee’s (MPC) crucial interest rate decision.

Nigeria’s headline inflation rate slowed for the third consecutive month to 22.22 percent in June 2025 from 22.97 percent in May, according to the National Bureau of Statistics (NBS)

On a month-on-month basis, inflation declined significantly to 1.68 percent in June from 1.53 percent in May, indicating a higher pace of price rise across the economy.

The Central Bank of Nigeria (CBN) has announced that the 301st meeting of the Monetary Policy Committee (MPC), where key interest rate decisions are made, will take place on Monday, July 21, and Tuesday, July 22, 2025.

During the May meeting, the MPC had warned that reinflationary pressures were still significant, arguing that maintaining elevated interest rates was necessary to mitigate those risks. The Committee also raised concerns that any premature rate cut might destabilise the naira, especially as the current FX rate gains have been supported by attractive yields on Open Market Operation (OMO) bills.

Food inflation declined sharply year-on-year to 21.97 percent in June from 21.14 percent in May. According to the NBS, this sharp decline is largely attributed to base-year effects following the inflation rebasing methodology.

On a month-on-month basis, however, food inflation increased marginally to 3.25percent in June from 2.19 percent in May. The price increase was led by staple foods such asGreen Peas (Dried), Pepper (Fresh), Shrimps (white dried), Crayfish, Meat (Fresh), Tomatoes (Fresh), Plantain Flour, Ground Pepper, etc.