Nigeria's Inflation Rate Hits Record High in June 2025

Source:Punch Nigeria
July 3, 2025
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Nigeria's inflation rate soared to a record 34.5% in June 2025, driven by rising food and energy costs, according to the National Bureau of Statistics (NBS). The report released on July 3, 2025, indicates a sharp increase from the 33.9% recorded in May, marking the highest level in nearly three decades. Food inflation, a major driver, climbed to 40.8%, with staple items like yam, rice, and beans becoming unaffordable for many households. Analysts attribute the surge to the lingering effects of fuel subsidy removal, naira devaluation, and insecurity in agricultural zones disrupting food supply chains. The Central Bank of Nigeria (CBN) is under pressure to implement tighter monetary policies, with a potential interest rate hike expected at the next Monetary Policy Committee meeting. However, experts warn that such measures could further stifle economic growth, as small businesses struggle with high borrowing costs. Nigerians are expressing frustration over the escalating cost of living, with many calling for government intervention through subsidies or price controls. The federal government has yet to respond to the latest figures, but sources indicate emergency measures are being discussed.

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