The Centre for the Promotion of Private Enterprise (CPPE) has warned that despite Nigeria’s inflation dropping to 16.05 percent in October, many households are still struggling with the high cost of living.

CPPE’s Chief Executive Officer, Yusuf, noted that while the latest data signals improving macroeconomic stability—supported by a calmer exchange rate, better policy coordination, and strong base effects—the reality for millions of Nigerians remains harsh.

“This is a significant disinflation milestone for the economy, but the impact on welfare is still minimal because structural pressures remain very high,” Yusuf said.

According to CPPE, sectors most critical to families—food, transportation, housing, electricity, education, and health—together accounted for 84 percent of the inflation burden in October, keeping everyday living costs elevated.

Although food inflation dropped from 16.87 percent in September to 13.12 percent in October, month-on-month prices still increased slightly.

Why Inflation Dropped

CPPE attributed the disinflation to three main factors:

1. High base effect: October 2024 inflation was 33.8 percent, making year-on-year growth appear lower.
2. Modest naira appreciation: This reduced imported inflation.
3. Monetary tightening and better FX liquidity: Reduced speculation and helped stabilize prices.

Yusuf urged urgent government interventions to make these gains translate into real relief for Nigerians, highlighting the need to:

• Expand irrigation, storage, and processing for farmers
• Create secure farming communities
• Improve federal highways and expand freight rail

“Disinflation is good news, but without structural reforms, it will not reduce the cost of living for ordinary Nigerians. We must double down on reforms to ensure the current trajectory benefits households and businesses,” he warned.