KEY POINTS
• Headline inflation fell to 15.39 per cent in August from 15.43 per cent in July.
• Food inflation declined to 19.57 per cent year on year, while core inflation fell to 13.29 per cent.
• Month on month inflation slowed sharply, although rural price pressures increased during the month.
MAIN STORY
Nigeria’s headline inflation rate declined to 15.39 per cent in August 2026, extending the moderation in consumer price pressures to a third consecutive month, according to the latest Consumer Price Index report by the National Bureau of Statistics.
The August rate was 0.04 percentage points below the 15.43 per cent recorded in July and significantly lower than the 23.14 per cent reported in August 2025.
The pace of monthly price increases also slowed, with headline inflation falling to 0.71 per cent in August from 1.57 per cent in July.
Food inflation recorded a broader decline, falling to 19.57 per cent year on year from 25.30 per cent in August 2025. Its month on month rate also dropped to 1.02 per cent from 5.56 per cent in July.
The NBS attributed the movement in food prices to changes in the average prices of items including palm oil, carrots, pepper, onions, cassava flour, beef, yam flour, water yam, melon, fresh ginger, fresh fish, Irish potatoes, wheat grain, frozen chicken and turkey meat.
The average annual food inflation rate for the 12 months ending August 2026 stood at 15.70 per cent, down from 29.86 per cent recorded in the corresponding period of the previous year.
Core inflation, which excludes volatile agricultural products and energy, also moderated to 13.29 per cent year on year in August from 22.93 per cent a year earlier.
On a month on month basis, core inflation fell to negative 0.06 per cent from 0.15 per cent in July. Its 12 month average declined to 17.30 per cent from 26.15 per cent in August 2025.
Inflation movements differed between urban and rural areas during the month. Urban inflation stood at 15.88 per cent year on year, while its monthly rate fell to 0.28 per cent from 1.90 per cent in July.
Rural monthly inflation, however, rose to 1.79 per cent from 0.78 per cent, although the annual rate remained lower at 14.23 per cent.
The 12 month average rates also moderated, with urban inflation falling to 16.28 per cent and rural inflation to 16.02 per cent.
The continued decline in headline, food and core inflation comes ahead of the Central Bank of Nigeria’s Monetary Policy Committee meeting scheduled for next week.
THE ISSUES
- The latest figures indicate that the annual pace of price increases has continued to slow, with headline inflation now 7.75 percentage points below its August 2025 level.
- Food remains a major component of household spending, making the decline in food inflation particularly relevant to consumers. The sharp slowdown in monthly food inflation also indicates that food prices increased at a slower pace during August.
- Regional price movements were uneven. While urban monthly inflation slowed substantially, rural inflation accelerated, showing that the moderation in overall prices was not uniform across locations.
- Core inflation also declined significantly, suggesting that the moderation extended beyond food and other volatile components to underlying price pressures.
- The figures provide the CBN with evidence of easing inflation ahead of its next policy meeting, although the small monthly decline in headline inflation leaves room for continued caution in assessing the direction of monetary policy.
WHAT’S BEING SAID
No direct stakeholder quotes were provided in the source material.
WHAT’S NEXT
The CBN’s Monetary Policy Committee is scheduled to meet next week, with the latest inflation figures forming part of the economic conditions available for consideration.
BOTTOM LINE
Nigeria’s headline inflation fell to 15.39 per cent in August, extending the decline for a third consecutive month. Food and core inflation also moderated, although rural monthly inflation moved in the opposite direction.
