Nigeria’s headline inflation rate declined for the eighth consecutive month, signaling a sustained easing of price pressures and gradual improvement in living costs across the country.

According to the Consumer Price Index (CPI) report released by the National Bureau of Statistics (NBS), headline inflation dropped by 160 basis points to 14.45 per cent in November, down from 16.05 per cent in October. This marks the eighth straight month of decline since April.

The NBS attributed the continued slowdown in inflation largely to lower prices of food items, gas, and transportation services.

Further details from the report showed that food inflation moderated significantly, falling by 204 basis points to 11.08 per cent in November, compared to 13.12 per cent in October. Meanwhile, core inflation—which excludes farm produce and energy—also eased by 65 basis points to 18.04 per cent, from 18.69 per cent recorded in the previous month.

Economic analysts have welcomed the sustained disinflation trend, noting its potential to strengthen household disposable income and improve economic resilience.

Managing Director of Highcap Securities, Mr. David Adonri, explained that high inflation erodes purchasing power and reduces disposable income, while declining inflation reverses this effect. According to him, lower inflation reduces consumption pressure, allowing households to save and invest more. He added that reduced costs could boost corporate profitability and encourage investment, although returns on fixed-income investments may decline as yields fall.

Similarly, Managing Director of GTI Capital, Mr. Kehinde Hassan, described the persistent decline in inflation as having positive multiplier effects for the economy. He acknowledged the possibility of minor fluctuations but emphasized that the consistent downward trend reflects improved price stability, providing a stronger foundation for economic planning. He advised the government to remain flexible and data-driven in policy implementation to sustain the gains.

Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, stressed the need for a coordinated mix of monetary, fiscal, and structural policies to ensure that disinflation translates into tangible welfare benefits for citizens.

Dr. Yusuf noted that despite the easing trend, inflation remains driven largely by essential items such as food, energy, transportation, education, and healthcare. He argued that for disinflation to have a more meaningful impact, prices of these basic necessities must decline further, as they account for a significant portion of household spending.

He called for deliberate fiscal interventions, including indirect subsidies on essential services. According to him, government at all levels—federal, state, and local—should invest more in mass transit systems, subsidize agricultural inputs to reduce food prices, and continue supporting education and healthcare.

“These measures are critical to ensuring that the benefits of disinflation are felt by ordinary Nigerians, not just reflected in macroeconomic indicators,” Yusuf said.