Inflation Hits 25-Year High as NBS Releases Shocking July Figures; Food Prices Skyrocket.
Nigerians are facing an unprecedented squeeze on their finances as the National Bureau of Statistics (NBS) today, August 1, 2025, announced that the headline inflation rate for July soared to 38.5%. This marks a staggering 25-year high, confirming the harsh economic reality for millions as the costs of goods and services continue their relentless upward climb, far outpacing any wage growth and eroding purchasing power across the nation.
The NBS report provides a grim breakdown, revealing that food inflation was the primary driver of this surge, rocketing to an alarming 45.2% on a year-on-year basis. The bureau attributed this to sharp, unabated increases in the prices of staple foods like rice, beans, yams, and bread. This crisis is compounded by soaring transport fares and energy costs, which analysts directly link to the lingering effects of the fuel subsidy removal and the persistent volatility in the foreign exchange market that has weakened the Naira.
Economic experts are calling for urgent and coordinated action from both fiscal and monetary authorities to tackle the crisis head-on. Dr. Bisi Alade, a Lagos-based economist, commented, "The CBN's recent interventions in the forex market are a piece of the puzzle, but not the whole solution. We need robust fiscal policies that will urgently boost local production, especially in agriculture, to tackle the root cause of this food crisis." The government, through the Minister of Finance, has acknowledged the hardship and reiterated its commitment to implementing relief measures, though citizens await tangible details.
For ordinary Nigerian households and small businesses, these statistics translate into difficult daily choices: reducing meal portions, cutting back on essential expenses, and struggling to keep businesses afloat amidst rising operational costs. The new inflation figures place immense pressure on the government to deliver on its economic promises and provide palpable relief. As citizens grapple with the highest cost of living in a generation, the challenge of navigating Nigeria's turbulent economy has never been greater.
I'm Adedayo Obadina
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