In May 2025, the headline inflation rate further declined, settling at 22.97% y/y, compared to the 23.71% y/y recorded in April 2025. This represents a decrease of 0.74 percentage points, supported by the high base effect from 2024, relatively cheap PMS,  and a comparatively stable Naira in the Foreign Exchange (FX) market.

Additionally, stable fuel prices and the hawkish monetary policy environment helped ease the inflationary pressure for the month under review. When compared to a year ago, Nigeria’s headline inflation rate slowed by 10.98 percentage points from the 33.95% y/y reported in May 2024.