Food Prices Stay High Despite Nigeria’s Fourth Consecutive Inflation Decline – CPPE

The Centre for the Promotion of Private Enterprise (CPPE) has revealed that food costs in Nigeria remain stubbornly high, even though the country recorded its fourth straight drop in headline inflation as of July 2025.

This was disclosed in a statement released on Sunday by the Director of CPPE, Muda Yusuf, following the publication of Nigeria’s July inflation report.

According to data from the National Bureau of Statistics (NBS) Consumer Price Index, headline inflation eased from 22.22 percent in June to 21.88 percent in July 2025. This marks a consistent decline for the fourth month, suggesting early signs of macroeconomic stability.

CPPE Reacts to July Inflation Figures

In its response, CPPE highlighted that the continuous fall in inflation indicates that Nigeria’s macroeconomic landscape is gradually stabilising. The organisation attributed this improvement to a more stable exchange rate and increased investor confidence in the local economy.

However, the economic think tank emphasized that despite these positive developments, inflationary pressures still weigh heavily on households, particularly through persistent increases in food prices.

Call for Coordinated Economic Policies

The CPPE explained that tackling Nigeria’s inflation challenge requires a coordinated policy mix, combining monetary, fiscal, and structural interventions. It urged policymakers not to rely solely on conventional monetary tightening tools, such as the benchmark interest rate (currently at 27.50%) and cash reserve ratio adjustments, but instead adopt more innovative measures to address liquidity challenges in the economy.

Need for Cautious Optimism

“The July 2025 inflation report provides a basis for cautious optimism,” the CPPE statement noted. “While progress has been made in easing headline and core inflation, the persistence of food inflation and rising month-on-month costs underscores lingering structural issues in Nigeria’s economy. To achieve long-term stability, a coordinated approach is crucial.”

The organisation concluded by reiterating that the path to sustainable economic stability requires more than short-term fixes. Strategic interventions across fiscal policies, monetary regulations, and structural reforms must be harmonized to consolidate recent improvements and address underlying weaknesses in the economy.