Nigeria: Inflation declines in June
Latest reading: Inflation eased to 22.2% in June, following May’s 23.0%. June marked the fifth month after the statistical office introduced methodological changes, lowering the weight of food—which had been a key inflation driver in previous months. The deceleration was primarily due to lower price pressures for housing and utilities plus transportation.
Annual average inflation fell to 26.6% in June (May: 27.6%). Meanwhile, core inflation fell to 22.4% in June from May’s 23.3%.
Lastly, consumer prices rose 1.68% from the previous month in June, accelerating from May’s 1.53% increase.
Outlook: After January’s change in inflation methodology, our panel has reduced its 2025 inflation forecasts by 3.4 percentage points. Panelists now expect a high base effect and the lower weight of food in the basket to push inflation under 2024’s level by more than previously anticipated.