Nigeria’s headline inflation rate eased to 15.43 per cent in July 2026, extending the recent moderation in price pressures, even as rising food prices continued to weigh on households.
The latest figure, released by the National Bureau of Statistics (NBS) on Monday, August 17, 2026, represents a decline from the 15.91 per cent recorded in June. On a month-on-month basis, headline inflation also slowed to 1.57 per cent in July, compared with 1.66 per cent in June.
The July moderation comes amid a broader easing in inflation following the sharp price pressures experienced in the aftermath of the removal of the petrol subsidy and foreign-exchange reforms.
The NBS data also showed a further easing in core inflation, which excludes volatile agricultural produce and energy prices. Core inflation fell to 14.97 per cent year-on-year in July, from 15.92 per cent in June, according to the latest Consumer Price Index figures.
The Consumer Price Index, which measures changes in the prices of goods and services consumed by households, rose to 145.30 points in July, from 143.00 points in June.
However, the improvement in the headline figure was accompanied by renewed pressure in food prices.
Food inflation rose to 20.31 per cent year-on-year in July, up from 17.52 per cent in June, underscoring the continued pressure on the cost of basic necessities despite the broader moderation in inflation.
On a month-on-month basis, food inflation was 5.56 per cent in July.
Food and non-alcoholic beverages account for the largest share of Nigeria’s Consumer Price Index basket, meaning changes in food prices have a significant effect on the overall inflation rate.
The latest figures point to an economy in which the pace of overall price increases is slowing, but the cost of essential household items remains a major concern for consumers.
A decline in the inflation rate does not mean that prices are falling. Rather, it means that prices are increasing at a slower rate than before. For households and businesses, therefore, the cumulative impact of earlier price increases continues to affect purchasing power and operating costs.
Nigeria’s inflation rate had risen sharply during the period following the removal of the fuel subsidy and foreign-exchange reforms, with the previous CPI series recording inflation above 34 per cent in late 2024.
The NBS subsequently rebased the Consumer Price Index, adopting 2024 as the new base year and 2023 as the weight reference year, resulting in a new inflation series.
The moderation recorded in 2026 has coincided with improved relative stability in the naira, tight monetary policy and the fading of some earlier cost pressures.
The Central Bank of Nigeria (CBN) retained its Monetary Policy Rate at 26.5 per cent at its July 20–21, 2026 Monetary Policy Committee meeting, maintaining a tight monetary stance aimed at containing inflationary pressures.
The CBN’s latest monetary policy decision means interest rates remain high even as inflation continues to moderate, leaving policymakers to balance the need to contain price pressures with the need to support economic activity.
For consumers, however, food remains the immediate concern.
The sharp rise in annual food inflation in July suggests that improvements in the headline inflation rate have yet to translate into comparable relief in household food costs.
Sustaining the downward trajectory in inflation will therefore depend not only on monetary policy but also on improvements in agricultural production and distribution, energy supply, transportation and logistics, as well as continued stability in the foreign-exchange market.
The July inflation figures will also be closely watched by businesses and investors as policymakers assess the appropriate direction of monetary and fiscal policy in the months ahead.
