According to the June 2025 Purchasing Managers’ Index report from the Central Bank of Nigeria, the country’s economy is showing steady growth but faces a serious risk of rising inflation. For the sixth month in a row, business activities expanded across the country, with the agriculture sector leading the growth, followed by industry and services. Out of 36 economic subsectors, 25 reported increased production and business activity. However, the report highlights a worrying trend: the cost of producing goods and running services (input costs) is rising much faster than the prices companies are charging their customers (output prices). Up until now, businesses have been absorbing these extra costs to keep prices stable, which is hurting their profit margins. This problem is most severe in the agriculture sector and lowest in the services sector. The central bank warns that businesses cannot continue to absorb these financial pressures forever. Eventually, companies will be forced to pass these higher costs onto the public, which will likely trigger a new wave of consumer price inflation.
Index to Nigerian Newspapers
