Nigeria Economic Update, Issue 50

In November 2025, the National Bureau of Statistics reported a gradual easing of annual price pressures alongside continued short-term increases in consumer prices. The Consumer Price Index (CPI) rose to 130.5, up from 128.9 in October, indicating a sustained increase in the general price level of goods and services purchased by households. Nonetheless, headline inflation moderated to 14.45%, down from 16.05% in the preceding month, reflecting a slowdown in year-on-year inflation. Compared with November 2024, headline inflation was 20.15%, a significant improvement largely driven by base effects following the rebasing of the CPI. Despite this moderation in annual terms, month-on-month inflation increased to 1.22% from 0.93% in October, signalling that underlying inflationary pressures persist. This suggests that households continue to experience rising costs in the short term, particularly for essential goods and services, even as broader inflation indicators show signs of improvement. The divergence between easing year-on-year inflation and rising month-on-month inflation highlights the need for continued policy vigilance. While inflationary conditions have improved relative to the previous year, achieving durable price stability will require addressing structural constraints such as food supply disruptions, energy costs, and distribution inefficiencies, alongside sustained macroeconomic discipline.

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