Inflation declines in July

Latest reading: Inflation came in at 21.9% in July, down from June’s 22.2%. The deceleration was primarily driven by lower prices pressures for housing and utilities plus transportation. In addition, the trend pointed down, with annual average inflation coming in at 25.6% in July (June: 26.6%). Meanwhile, core inflation fell to 21.4% in July from June’s 22.4%. Lastly, consumer prices rose 1.99% in July over the previous month, accelerating from June's 1.68% increase. July's figure was the highest reading since March.

Outlook: After January’s change in inflation methodology, our panel has cut its 2025 inflation forecasts by 3.3 percentage points. Panelists now expect a high base of comparison and the lower weight of food in the basket to bring inflation under 2024’s level by more than previously expected.

How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Nigerian inflation projections for the next ten years from a panel of 21 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable inflation forecast available for Nigerian inflation.

Download one of our sample reports to visualize what a Consensus Forecast is and see our Nigerian inflation projections.

Want to get access to the full dataset of Nigerian inflation forecasts? Send an email to info@focus-economics.com.