Nigeria’s headline inflation rate eased markedly to 15.15% in December 2025, according to the latest Consumer Price Index (CPI) report from the National Bureau of Statistics (NBS), signaling a continued moderation in price pressures across the economy. The decline follows a methodological overhaul of the CPI that aligns the country’s inflation reporting with global best practices and has won praise from the International Monetary Fund (IMF).
The updated CPI figures show that inflation slowed from 17.33% in November 2025 to 15.15% in December on a year-on-year basis, a level significantly below the 34.80% recorded in December 2024 under the old calculation method. The NBS reported that the CPI rose to 131.2 points in December from 130.5 in November, reflecting a slower overall pace of price increases nationwide.
In an official statement, the IMF welcomed the revised inflation data and methodology, “which show an easing of inflation that, if sustained, will help reduce cost-of-living pressures and support macroeconomic stability.” The Fund also said the changes, which involve rebasing the CPI and adopting a 12-month reference period for 2024, bring Nigeria’s inflation reporting in line with international standards and improve data credibility.
The rebasing exercise, the first in many years, updated the base year and weight structure used to calculate the CPI, a move aimed at capturing more accurately current household consumption patterns. The switch from a single-month reference to a full-year basis helps avoid artificial spikes driven by base effects and gives a steadier picture of price trends.
Despite the headline drop in inflation, short-term price pressures remain present. On a month-on-month basis, inflation moderated to 0.54% in December from 1.22% in November, pointing to a slowdown in the pace of price increases. However, the 12-month average inflation rate remained elevated, reflecting cumulative price rises throughout the year.
Sector breakdowns show that food and non-alcoholic beverages continued to contribute significantly to headline inflation, although food inflation itself eased, helped by falling prices of staples such as tomatoes, garri, potatoes and onions. Other notable contributors included transport, housing, and services sectors, albeit to lesser degrees.
Economists say the IMF’s endorsement of Nigeria’s rebased CPI and easing inflation trend could bolster investor confidence in the country’s economic statistics and policymaking. Accurate and internationally comparable data is crucial for guiding monetary policy decisions by the Central Bank of Nigeria, especially as it works to balance inflation control with support for economic growth and investment.
For policymakers, the moderation in inflation offers a welcome signal of progress, but lingering price pressures mean that careful monitoring and supportive economic policies will be needed to sustain the downward trend. As Nigeria moves into 2026, stakeholders will be watching how inflationary dynamics interact with broader macroeconomic indicators such as exchange rates, fiscal policy measures and consumer demand.
Overall, the combination of revised methodology and the IMF’s backing underscores a shift toward greater transparency and analytical rigor in economic reporting, a development that could help Nigeria attract more foreign capital while providing a clearer picture of how its economy is evolving.
