Inflation Rate Moderation Yet to Impact Consumers — CPPE

Nigeria’s headline inflation rate slowed to 18.02% in September 2025, marking a notable decline from 20.12% percent in August, according to the latest data released by the National Bureau of Statistics (NBS).

Despite the easing trend, the Centre for the Promotion of Private Enterprise (CPPE) has cautioned that the relief may not immediately translate into better living conditions for most households.

Dr. Muda Yusuf, Chief Executive Officer of the CPPE, in a policy brief sent to Nairametrics on Wednesday, said that while the moderation in inflation is a welcome development, the gains are still far from being felt by the average Nigerian household.

“While this disinflation trajectory is commendable, inflation levels remain high and continue to erode household purchasing power, undermine consumer confidence, and weaken real incomes,” the economist said. 

“Business confidence is rising, but consumer confidence remains fragile. Policies that enhance productivity, stabilise prices, and reduce the structural cost of doing business will not only strengthen the disinflation trajectory but also foster inclusive and sustainable economic recovery,” he added. 

The harvest season has moderated food prices 

According to the CPPE, the decline in food inflation in September is occasioned by the harvest season.

According to him, “Increased food supply during the harvest season has moderated food prices. Also, the base effect of inflation rates in 2024 averaged above 30 per cent, creating a high statistical base that supports a relative decline in current inflation readings; the naira has experienced relative stability — and mild appreciation in some months — helping to moderate imported inflation; macroeconomic policy improvements through tighter monetary policy, reduced fiscal leakages, and better coordination between fiscal and monetary authorities have contributed to easing inflationary pressures.” 

He said these factors collectively explain the progress made on price moderation in September 2025.

“With consistency, coordination, and structural reforms, Nigeria can achieve a stable single-digit inflation rate over the medium term — anchoring growth, improving welfare, and restoring confidence in the economy.” 

CPPE stressed that “the gains achieved so far must therefore be consolidated through decisive and well-targeted policy actions.”

What you should know 

• According to NBS, the food inflation rate stood at 16.87% in September 2025 on a year-on-year basis, representing a sharp decline of 20.9 percentage points from 37.77% recorded in September 2024.
• The core inflation rate, which excludes the prices of volatile agricultural products and energy, stood at 19.53% in September 2025 on a year-on-year basis, representing a decline of 7.9 percentage points from 27.43% recorded in September 2024.

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