Nigeria’s headline inflation rate fell slightly to 15.39 per cent in August 2026, offering a modest sign of easing price pressures even as food inflation remained elevated at 19.57 per cent year-on-year.
The latest Consumer Price Index released by the National Bureau of Statistics (NBS) showed that headline inflation declined by 0.04 percentage points from 15.43 per cent recorded in July.
The sharper movement came in the monthly figure, which dropped to 0.71 per cent in August from 1.57 per cent a month earlier. Brandspur Banking News Desk reports that the slowdown suggests prices increased at a considerably slower pace during the month, although the cost of food and other essential items remains high for many households.
Food continued to make the largest contribution to the headline inflation rate, accounting for 6.16 percentage points. Restaurants and accommodation services contributed 1.99 points, transport 1.64 points, while housing, water, electricity, gas and other fuels contributed 1.30 points.
Food inflation stood at 19.57 per cent in August compared with the corresponding period last year. On a monthly basis, however, food inflation dropped sharply to 1.02 per cent from 5.56 per cent in July.
The NBS attributed the moderation to changes in the average prices of several food commodities, including palm oil, carrots, pepper, onions, cassava flour, beef, yam flour, water yam, egusi, fresh ginger, fresh fish, Irish potatoes, wheat grain, frozen chicken and turkey.
The figures mean that while food prices did not rise as rapidly in August as they did in July, consumers were still paying substantially more for food than they were a year earlier.
Core inflation also showed signs of easing. The measure, which excludes volatile agricultural produce and energy, fell to 13.29 per cent year-on-year in August from 22.93 per cent recorded in August 2025.
On a monthly basis, core inflation slipped into negative territory at -0.06 per cent in August, compared with 0.15 per cent in July, pointing to weaker underlying price pressure outside the more volatile components of the consumer basket.
Also read: https://brandspurng.com/2026/08/26/nigerias-poverty-rate-hits-63-despite-lower-inflation-world-bank/
The inflation picture varied significantly between urban and rural areas. Urban inflation stood at 15.88 per cent year-on-year, while rural inflation was 14.23 per cent.
However, monthly movements showed a sharp divergence. Urban inflation slowed to 0.28 per cent from 1.90 per cent in July, while rural inflation accelerated to 1.79 per cent from 0.78 per cent.
State-level figures also showed that the national average masked wide differences in the cost of living. Lagos recorded the highest year-on-year headline inflation at 23.68 per cent, followed by Zamfara at 22.56 per cent and Enugu at 22.06 per cent.
Sokoto recorded the lowest year-on-year headline inflation at 2.11 per cent, followed by Kebbi at 3.72 per cent and Jigawa at 3.81 per cent.
Rivers posted the highest monthly inflation rate at 6.92 per cent, while Osun and Kano recorded 5.61 per cent and 5.59 per cent respectively. Anambra, Bauchi and Borno recorded negative monthly inflation rates of -8.83 per cent, -7.13 per cent and -7.09 per cent.
Food pressures were particularly pronounced in some states. Adamawa recorded the highest year-on-year food inflation at 38.85 per cent, followed by Zamfara at 37.96 per cent and Bayelsa at 36.20 per cent.
The latest figures come as Nigeria continues to face pressure from elevated living costs and food supply challenges. NBS data on foreign trade in goods for the second quarter of 2026 also showed that agricultural imports rose to N1.20 trillion, representing a 1.63 per cent increase from the same period in 2025 and a 45.43 per cent rise from the first quarter.
For households, the latest inflation figures point to an important distinction: inflation is slowing, but the high annual food inflation rate means the overall cost of living remains considerably above last year’s level. A sustained decline in monthly price increases will therefore be crucial if the moderation is to translate into meaningful relief for consumers.
