Nigeria’s Inflation Rate Dips for 3rd Consecutive Month, but Food Prices Still Squeeze Households

Nigeria’s inflation rate has dropped for the third month in a row, offering a glimmer of hope amid deepening economic woes. According to new figures released on Wednesday by the National Bureau of Statistics (NBS), the annual inflation rate eased to 22.22% in June, down from 22.97% in May. But for many Nigerians, especially low-income earners, the cost-of-living crisis remains painfully real.

Inflation Trend Offers Some Relief

The marginal decline marks a continuation of the downward trend in inflation since April 2025, following record-breaking highs in 2024. While the latest figures suggest some progress, economists warn that the pace of improvement is sluggish, and far from enough.

“The numbers look better on paper, but everyday realities tell a different story,” said economic analyst Funke Ojo. “People are still paying more for food, transport, and basic services.”

Indeed, food inflation rose slightly to 21.97% in June compared to the previous month, a concerning uptick for a country where food accounts for a significant portion of household spending.

Cost-of-Living Crisis Still Deepens

The economic hardship is especially evident in urban markets and rural communities alike. Last month’s Eid al-Adha celebrations saw many Nigerians unable to afford traditional ram sacrifices, highlighting how inflation continues to affect cultural and religious observances.

Additionally, the June 12 democracy day protests across major Nigerian cities brought renewed attention to the financial strain ordinary citizens face. Demonstrators voiced frustrations not only about governance but also about surging prices and shrinking purchasing power.

Challenges and Cautious Optimism

While a falling inflation rate is a positive indicator for policymakers, the slow pace of decline, and the rise in food costs, suggest that economic recovery will be gradual and uneven.

“The pressure is still on,” said Lagos-based trader Musa Ibrahim. “A drop in inflation doesn’t mean much if I still can’t afford three meals a day for my family.”

Analysts say the government must take stronger action to stabilize the naira, boost local food production, and implement targeted social programs to cushion vulnerable groups.

As Nigeria grapples with this fragile progress, the coming months will test the resilience of both its people and its policies.

Read Also: Abuja Comes Alive with Colour and Culture at 2025 Igbo Festival