Staple, Perishable Items Push Food Inflation to 3.25% in June

The monthly uptick in food inflation was driven by increases in the average prices of several staples and perishables, including green peas (dried), fresh pepper, shrimps (white dried), crayfish, fresh meat, fresh tomatoes, ground pepper, and plantain flour. This 1.07 percentage point rise from the previous month signals continued pressure on household food expenditure.

On a year-on-year basis, the food inflation rate dropped sharply by 18.93 percentage points, down from 40.87 per cent in June 2024. This significant decline is primarily a technical adjustment resulting from a change in the base year used to calculate inflation, now set at 2024. Without this recalibration, actual inflation trends may appear more persistent than the data suggests.

The average annual food inflation rate for the 12 months ending in June 2025 was 28.28 per cent, lower than the 35.30 per cent recorded in the corresponding period of the previous year — a 7.02 percentage point improvement.

Despite the easing in annual food inflation, the broader inflation landscape showed signs of strain. The Consumer Price Index (CPI) rose to 123.4 in June 2025, up from 121.4 in May, reflecting price increases across a range of goods and services.

The headline inflation rate which includes both food and non-food items eased to 22.22 per cent year-on-year in June, down from 22.97 per cent in May, indicating a slight decline of 0.75 percentage points. However, on a month-on-month basis, headline inflation climbed to 1.68 per cent, higher than the 1.53 per cent recorded in May, revealing that prices are still rising, just at a slower pace annually.

Urban areas experienced steeper inflation pressures, with the urban month-on-month inflation rate increasing to 2.11 per cent, compared to 1.40 per cent in May. In contrast, rural inflation slowed to 0.63 per cent, down from 1.83 per cent in the previous month. On a year-on-year basis, urban inflation stood at 22.72 per cent, while rural inflation was 20.85 per cent.

The report also showed that core inflation, which excludes volatile agricultural products and energy, rose to 2.46 per cent month-on-month in June up significantly from 1.10 per cent in May. On an annual basis, core inflation stood at 22.76 per cent, down from 27.4 per cent in June 2024, indicating some easing in non-food-related inflation.

Across the states, Borno (31.63%), Abuja (26.79%), and Benue (25.91%) recorded the highest year-on-year headline inflation, while Zamfara (9.90%), Yobe (13.51%), and Sokoto (15.78%) had the lowest. On a monthly basis, headline inflation was most pronounced in Ekiti (5.39%), Delta (5.15%), and Lagos (5.13%), while states like Zamfara (-6.89%), Niger (-5.35%), and Plateau (-4.01%) recorded significant declines.

Food inflation varied widely across states as well. Borno (47.40%), Ebonyi (30.62%), and Bayelsa (28.64%) posted the highest year-on-year food inflation rates, while Katsina (6.21%), Adamawa (10.90%), and Sokoto (15.25%) recorded the lowest. On a month-on-month basis, Enugu (11.90%), Kwara (9.97%), and Rivers (9.88%) saw the highest spikes, while Borno (-7.63%), Sokoto (-6.43%), and Bayelsa (-6.34%) recorded declines in food prices.

The NBS emphasized that price movements vary across states due to differing consumption patterns and item weightings in the inflation basket. As a result, interstate comparisons can be misleading.

While the headline and annual food inflation figures may suggest moderation, the rise in monthly inflation, particularly in food and core components, signals that inflationary pressures remain a concern especially for lower-income households already grappling with cost-of-living challenges.