The Central Bank of Nigeria has warned that rising input costs across key sectors could spark a new wave of consumer price inflation, as businesses continue to absorb cost pressures that may soon become unsustainable.

This was disclosed in the June 2025 Purchasing Managers’ Index report released by the apex bank.

According to the report, the input price indices for the composite economy, as well as for the Industry, Services, and Agriculture sectors, exceeded their respective

output price indices during the review period.

The development, the CBN noted, signals mounting pressure on business margins, with firms currently absorbing costs rather than passing them on to consumers.

The increase in the gap between higher input costs and output price tends to mount pressure on business profit margins. Cost absorption by firms is likely to be unsustainable in the long term and may foreshadow future consumer price inflation,” the report stated.

The report showed that the agriculture sector recorded the highest cost absorption index at 9.8 points in June, indicating the widest gap between input and output prices.

Despite this, all three major sectors—industry, services, and agriculture—posted growth in business activity during the month.