Disinflation in Nigeria is falling at a pace not seen in over a decade

In Nigeria, inflation is experiencing a significant and sustained slowdown, with data showing a decline of 7 percentage points from January to July 2025. This marks the first time in nearly a decade that the country has seen such a meaningful disinflation trend.

The National Bureau of Statistics announced a rebasing of the Consumer Price Index in January 2025, which contributed to the sharp reset of inflation figures. Despite this, critics argue that the new CPI may understate the true extent of the crisis, as many Nigerians continue to face high prices for food, rent, and transport.

The slowdown in inflation is attributed to factors such as high food inflation, sticky transport costs, and lagging real wages. Analysts predict that inflation will continue to decrease, potentially settling around December 2025, making it one of the fastest disinflation periods in Nigeria's history.