The Consumer Price Index (CPI), which measures the rate of change in prices of goods and commodities, further eased to 16.05 per cent in October, compared to 18.02 per cent the preceding month, National Bureau of Statistics (NBS) said on Monday.
The 1.96 per cent decline in headline inflation was attributed to a slower rate of increases in general prices.
Centre for the Promotion of Private Enterprise (CPPE) hailed the “sharp moderation” in inflation rate, describing it as a significant win for macroeconomic stability.
According to Chief Executive Officer of CPPE, Dr. Muda Yusuf, “Nigeria recorded a significant moderation in inflation in October 2025, marking one of the strongest single-month disinflation this year.”
Year-on-year, inflation stood at 17.82 per cent, compared to 33.88 per cent in October 2024.
According to the CPI Report for October, which was released by the NBS, headline inflation “decreased in October 2025 compared to the same month in the preceding year (i.e., October 2024), though with a different base year, November 2009 = 100”.
However, month-on-month headline inflation was 0.93 per cent compared to 0.72 per cent in September.
“This means that in October 2025, the rate of increase in the average price level was higher than the rate of increase in the average price level in September 2025,” NBS stated.
Year-on-year, food inflation stood at 13.12 per cent, from 39.16 per cent in October 2024.
The statistical agency stressed, “The significant decline in the annual food inflation figure is technically due to the change in the base year.”
However, month-on-month, the food index was -0.37 per cent, compared to -1.57 per cent in September.
The NBS attributed the increase to the rate of rise in the average prices of onions, fruits (oranges, pineapple), shrimp, groundnuts (unshelled), vegetables (ugu, okazi leaf), and goat meat, cow tail, liver, among others.
The all items less farm produces and energy or core inflation, which excludes the prices of volatile agricultural produces and energy, stood at 18.69 per cent, year-on-year in October compared to 28.37 per cent in October 2024.
On a month-on-month basis, core inflation stood at 1.41 per cent compared to 1.41 per cent in September.
At state level, headline inflation on year-on-year basis was highest in Ekiti (20.14 per cent), Nasarawa (18.97 per cent), and Zamfara (18.81 per cent), while Bauchi (9.99 per cent), Anambra (11.72 per cent), and Gombe (11.73 per cent) recorded the lowest rise in prices.
Month-on -month, the highest increases were recorded in Niger (4.90 per cent), Anambra (4.90 per cent), and Enugu (4.75 per cent), while Edo (-4 per cent), Katsina (-3.26 per cent), and Adamawa (-3.10 per cent) recorded a decline.
However, year-on-year, food inflation was highest in Ogun (20.85 per cent), Nasarawa (19.96 per cent), and Ekiti (19.70 per cent), while Akwa Ibom (3.98 per cent), Katsina (4.15 per cent), and Yobe (4.29 per cent) recorded the slowest rise in food prices.
Month-on-month, the food index was highest in Bauchi (6.77 per cent), Abuja (5.11 per cent), and Niger (4.84 per cent), while Katsina (-7.72 per cent), Oyo (-5.89 per cent), and Taraba (-4.89 per cent) recorded a decline.
The CPPE chief executive said the drop in headline inflation was driven by base effects, exchange rate stability, and improving macroeconomic fundamentals, adding that similar moderation is seen across food and core inflation indices.
He stated, “Nigeria’s macroeconomic environment continued to stabilise in October 2025, reflected in a sharp deceleration in the inflation rate.
“The persistent downward trend is indicative of improving policy coordination in monetary, fiscal, and exchange rate management.
“The magnitude of the October decline exceeded expectations, signalling stronger confidence in the ongoing reform agenda.”
Yusuf stated that food inflation moderated from 16.87 per cent in September to 13.12 per cent in October. He said month-on-month food inflation saw a marginal uptick, indicating persistent supply pressures.
He stated, “While annual inflation decreased sharply, month-on-month inflation rose slightly.
“This indicates residual frictions in supply chains and price stickiness despite improving macro fundamentals.”
He identified monetary tightening measures, better FX market liquidity, reduction in speculative demand for foreign currency and improved investor sentiment due to ongoing reforms as among the factors collectively enhancing price stability.
Yusuf stated that five sectors accounted for 84 per cent of October’s inflationary burden.
The sectors are the food and non-alcoholic beverages, transport, housing, water, electricity, gas and utilities, education and health.
He said the sectors exerted the strongest direct impact on citizens’ daily cost of living, making them central to effective inflation management.
Yusuf also said several unresolved structural constraints had continued to limit the speed at which disinflation translated into real price relief.
He identified the structural constraints as high cost of logistics and transportation, high energy costs, high cost of funds, climate change and weather shocks, among others.
Yusuf said consolidating the gains of disinflation and ensuring real welfare benefits for citizens would require a combination of monetary, fiscal, and structural policies.
According to him, “Robust coordination between the CBN, Ministry of Finance, Ministry of Agriculture, Ministry of Transport, customs, and trade agencies is essential to achieve holistic inflation management.”
He also advised government to strengthen food system resilience by expanding irrigation and climate-resilient farming.
Yusuf stated, “To ensure that disinflation translates into real cost-of-living relief, Nigeria must undertake deliberate and sustained reforms across critical sectors.
“With coordinated monetary, fiscal, and structural policies, the current trajectory can be strengthened, broadened, and sustained.”
James Emejo and Dike Onwuamaeze
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