Inflation eased in April 2025 as the headline inflation rate dropped to 23.71% from the previous month’s rate of 24.23%, according to recent Consumer Price Index (CPI) data.
While the headline inflation rate showed some relief, sectoral analysis of different industries highlighted which industries are thriving and those that are struggling. Below are analysis of how the inflation rate of key sectors in Nigeria fared in April 2025:
● Food:
The drop in inflation was driven largely by a decrease in food inflation, which dropped to 21.26% year-on-year in April from 40.53% in 2024, which is technically due to a change in the base year.
However, on a month-on-month basis, food inflation dropped by 0.12% in April to 2.06% from the prior month’s 2.18%, as prices of food items like wheat grain, yam flour, soya beans, and rice reduced.
A closer look at factors driving the reduction in food prices, the report showed that the farm produce inflation rate decreased to 0.95% in April from March’s 2.64% inflation rate. This showed that prices of farm products like fruits and vegetables increased at a slower rate compared to the previous month.
● Energy:
Housing, water, electricity, gas, and other fuels are some of the major drivers of Nigeria’s inflation rate, as they contribute 2.00% year-on-year and 0.16% on a month-on-month basis.
The significant contribution of the energy sector to Nigeria’s inflation rate is not surprising, as businesses, households, and industries require electricity to operate.
According to the report, the energy inflation rate rose to 13.6% in April from 9.21% in March 2025. Rising crude oil prices, coupled with frequent electricity outages, which necessitate the need for businesses and households to rely on alternative sources like generators, could be attributed as factors driving the increase in energy inflation.
● Information and Communication:
The information and communication sector is one of the sectors contributing the least to Nigeria’s inflation rate. It contributed 0.78% in April on a year-on-year basis and 0.06% month-on-month.
The sector’s lower contribution to the inflation rate could be attributed to its reliance on digital platforms, unlike sectors relying on physical goods, and the relative stability of prices in the sector.
● Goods and Services:
The inflation rate from the goods and services sector eased in April compared to the previous month. According to the CPI data, the service sectors recorded a drop in inflation rate from 3.44% in March to 2.20% in April. While the goods sector eased to 1.89% from 3.89% in March.
The reduction in the service sector showed that prices of services like healthcare, education, personal care, and banking rose slowly in April, which could signify a potential easing in service delivery. While the prices of manufactured goods also increased at a slower price.
