Nigeria's Food Inflation Surges 21.97% Year-on-Year in June 2025

Nigeria's food inflation rate surged to 21.97% year-on-year in June 2025, as reported by the National Bureau of Statistics. This significant increase highlights the ongoing challenges faced by the nation in managing food prices, which have been a persistent issue for consumers and policymakers alike. The rise in food inflation is particularly concerning given the broader economic context, where overall inflation rates have also been elevated.

The food inflation rate in June 2025 marked a notable increase from the previous month, rising by 83 basis points to 21.97% year-on-year from 21.14% in May. This upward trend is attributed to the escalating prices of various essential food items, including green peas, fresh pepper, dried shrimp, crayfish, fresh meat, fresh tomatoes, plantain flour, and ground pepper. The month-on-month increase in food inflation was even more pronounced, jumping by 107 basis points to 3.25% from 2.19% in April. This rapid escalation in food prices underscores the immediate and severe impact on household budgets and overall consumer spending.

Breaking down the data further, the urban and rural index provides additional insight. Urban areas saw a year-on-year inflation rate of 22.72%, with a month-on-month increase of 2.11% from 1.40% in May 2025. In contrast, rural regions experienced a slightly lower year-on-year rate of 20.85%, with a modest month-on-month rise of 0.63% from 1.83% in May 2025. This disparity highlights the varying impacts of inflation across different living environments, with urban dwellers facing a sharper increase in costs.

The headline Consumer Price Index (CPI) for June 2025 also reflects this upward trend, recording a year-on-year rate of 22.22% and a month-on-month increase of 1.68% from 1.53% in May 2025. Over the past 12 months, the CPI has fluctuated, peaking at 34.80% before settling at 22.22% in June. The shift from the old base year of 2009 to the new base year of 2024 offers a fresh perspective on these changes, showing a gradual decline from 23.18% in May to the current figure.

Regionally, the all-items inflation rate varies widely. On a year-on-year basis, Borno leads with the highest rise at 31.63%, followed by the Federal Capital Territory at 26.79% and Benue at 25.91%. At the other end of the spectrum, Zamfara recorded the slowest rise at 9.90%, with Yobe at 13.51% and Sokoto at 15.78%. For month-on-month changes, Ekiti topped the list with a 5.39% increase, closely followed by Delta and Lagos, both at 5.15% and 5.13% respectively. Meanwhile, Zamfara saw the slowest rise at 6.89%, with Niger at 5.35% and Plateau at 4.01%.

These figures underscore the uneven economic landscape across Nigeria, where some states grapple with significantly higher inflation rates than others. The sharp increases in states like Borno and Ekiti suggest localised factors driving up costs, possibly linked to supply chain disruptions or regional demand. Conversely, the slower rises in Zamfara and Plateau indicate a more stable price environment, though still above comfortable levels for many residents.

The broader inflation landscape in Nigeria also saw changes in June 2025. Headline inflation, which measures the overall increase in consumer prices, eased slightly to 22.22% year-on-year from 22.97% in May. This reduction of 75 basis points suggests some stabilization in the broader economy, although the overall inflation rate remains high. On a month-on-month basis, consumer prices increased to 1.68% from 1.53% in May, indicating a continued upward pressure on prices.

Core inflation, which excludes farm produce and energy, also showed an increase. It rose by 48 basis points to 22.76% year-on-year in June from 22.28% in May. The month-on-month core inflation rate surged by 136 basis points to 2.46% from 1.10% in May, reflecting a significant acceleration in price increases for non-food items. This trend is concerning as it suggests that inflationary pressures are not limited to food items but are pervasive across various sectors of the economy.

The rise in food inflation to 21.97% in June 2025 is a critical indicator of the economic challenges Nigeria faces. It underscores the need for targeted policies to address the root causes of food price increases, such as supply chain disruptions, agricultural productivity, and market regulations. The government and policymakers must prioritize measures to stabilize food prices and ensure food security for the population. This includes investing in agricultural infrastructure, supporting farmers, and implementing effective price control mechanisms. Additionally, addressing broader inflationary pressures through monetary and fiscal policies will be essential to achieve sustainable economic growth and stability.