The Centre for the Promotion of Private Enterprise (CPPE) has cautioned that Nigeria’s recent relief in inflation figures may be undermined by rising food prices and persistent structural bottlenecks in the economy.
The warning follows the July 2025 inflation report released by the National Bureau of Statistics (NBS), which showed headline inflation easing for the fourth consecutive month to 21.88 per cent from 22.22 per cent in June.
On a month-on-month basis, food inflation slowed marginally from 3.25 per cent in June to 3.12 per cent in July, while core inflation dropped slightly by 0.03 per cent year-on-year and fell sharply month-on-month from 3.46 per cent to 0.97 per cent.
According to CPPE, the moderation was supported by exchange rate stability, improved investor confidence, and the impact of government import duty waivers on staples such as rice, maize, and sorghum. The base effect of high inflation in 2022 also played a role in the downward trend.
Despite these positives, CPPE flagged worrying signs. Month-on-month headline inflation climbed to 1.99 per cent in July from 1.68 per cent in June, while year-on-year food inflation rose to 22.74 per cent from 21.97 per cent.
“These increases highlight the continuing vulnerability of the economy to supply-side
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