Nigeria's Inflation Rate Drops to 16.1%, Fueling Rate Cut Expectations

Nigeria's inflation rate decreased to 16.1% in October 2025, marking the seventh consecutive monthly decline. This sharp slowdown, below economists' expectations, has raised hopes for a substantial reduction in the Central Bank of Nigeria's benchmark rate.

The drop was driven by a broad-based decline in food inflation, which fell to 13.1% year-on-year. Despite positive trends like the ongoing harvest season and exchange rate stability, risks such as festive season demand and external shocks remain.

Analysts are optimistic about a potential rate cut at the upcoming Monetary Policy Committee meeting.