Nigeria: Inflation falls in May
Latest reading: Inflation eased to 23.0% in May from April’s 23.7%. May marked the fifth month after the statistical office introduced methodological changes, lowering the weight of food—which had been a key inflation driver in previous months. The result was driven by moderating price pressures for food, housing and transportation.
Annual average inflation fell to 27.6% in May (April: 28.5%). Meanwhile, core inflation fell to 23.3% in May from the previous month’s 24.5%.
Finally, consumer prices rose 1.53% in May over the previous month, moderating from April’s 1.86% increase. May’s result marked the weakest reading since December 2024.
Outlook: After January’s change in inflation methodology, our panel has cut its 2025 inflation forecasts by 3.3 percentage points. Panelists now expect a higher base of comparison and the lower weight of food in the basket to push inflation below 2024’s level by more than previously anticipated.