Headline inflation in Nigeria eased to 15.43% in July 2026 from 15.91% in June, but a sharp increase in food prices continued to put pressure on household budgets.
Nigeria’s headline inflation rate moderated further in July, extending a months-long decline in the pace of overall price increases, even as food inflation accelerated sharply during the month.
The National Bureau of Statistics (NBS), in its Consumer Price Index (CPI) report released on Monday, said headline inflation fell to 15.43% year-on-year in July 2026, from 15.91% in June.
The 0.48 percentage-point decline indicates that the broader inflationary environment continued to ease, although consumers faced renewed pressure from rising food prices.
On a month-on-month basis, headline inflation slowed to 1.57% in July, compared with 1.66% in June, suggesting that prices continued to rise but at a slower pace.
The CPI index itself increased to 145.3 points in July from 143.0 points in June, representing a 2.2-point increase in the overall price level.
Annual Inflation Drops Sharply
The NBS said average headline inflation for the 12 months ending July 2026 stood at 16.89%, significantly below the 29.10% recorded in the corresponding period of 2025.
The sustained decline reflects a broad moderation in inflationary pressures compared with a year earlier, although the latest food-price data indicate that the disinflation trend remains uneven.
Food Inflation Reaccelerates
Food prices emerged as the major source of inflationary pressure in July.
Food inflation accelerated to 5.56% month-on-month, from 3.75% in June, marking a significant increase in the pace at which food prices rose during the month.
On a year-on-year basis, food inflation stood at 20.31%, down substantially from 26.20% in July 2025.
The NBS attributed the monthly increase to higher average prices for commodities including crayfish, fresh pepper, onions, carrots, rice, water yam, tomatoes, garri, plantain, beef, eggs, guinea corn, ginger and plantain flour.
Average annual food inflation for the 12 months ending July 2026 was 16.06%, compared with 30.85% a year earlier.
The figures suggest that while food-price inflation has fallen significantly over the past year, short-term price pressures remain strong across key staples.
Core Inflation Continues to Ease
Underlying inflationary pressure also weakened in July.
Core inflation, which excludes volatile agricultural produce and energy prices, fell to 14.97% year-on-year, compared with 23.95% in July 2025.
On a month-on-month basis, core inflation slowed sharply to 0.15% from 1.66% in June, pointing to a significant moderation in underlying price pressures.
The average 12-month core inflation rate stood at 18.09%, down from 26.56% in July 2025.
The combination of lower headline and core inflation suggests that Nigeria’s broader disinflation trend remains intact, although food-price volatility could complicate the pace of further improvement.
Urban Inflation Remains Higher Than Rural Rate
Urban consumers continued to experience higher inflation than their rural counterparts.
Urban inflation stood at 16.12% year-on-year in July, while monthly urban inflation moderated to 1.90%, from 2.13% in June.
Average annual urban inflation for the 12 months ending July 2026 was 16.81%, compared with 30.74% a year earlier.
Rural inflation stood at 13.77% year-on-year, while monthly rural inflation increased to 0.78% from 0.52% in June.
Average annual rural inflation fell to 16.72%, compared with 27.05% in July 2025.
Adamawa Records Highest Inflation
Inflationary pressures remained highly uneven across Nigerian states.
Adamawa recorded the highest year-on-year headline inflation rate at 33.03%, followed by Yobe at 25.21% and Anambra at 23.99%.
Nasarawa recorded the lowest headline inflation at 7.86%, followed by Kebbi and Borno, both at 9.12%.
On a month-on-month basis, Adamawa also recorded the largest increase at 12.48%, followed by Anambra at 9.95% and Delta at 9.54%.
Niger recorded the sharpest monthly decline at -5.86%, followed by Enugu at -5.71% and Kebbi at -4.89%.
Food Inflation Highest in Adamawa
The divergence was even more pronounced in food prices.
Adamawa recorded the highest year-on-year food inflation at 51.36%, followed by Katsina at 30.84% and Zamfara at 30.65%.
Borno recorded the lowest year-on-year food inflation at -0.31%, followed by Nasarawa at 6.88% and Kebbi at 12.50%.
On a month-on-month basis, food inflation was highest in Adamawa at 17.02%, followed by Lagos at 13.48% and Borno at 13.26%.
Jigawa recorded the sharpest monthly decline in food prices at -3.68%, followed by Kebbi at -3.67% and Bauchi at -1.85%.
Outlook for Nigeria’s Inflation
July’s inflation figures point to a mixed picture for Nigeria’s economy.
The continued decline in headline and core inflation indicates that broader price pressures are easing significantly compared with 2025. However, the sharp monthly increase in food inflation highlights persistent vulnerabilities in the food supply chain.
For businesses and investors, the moderation in core inflation could provide greater visibility for pricing, investment and financial planning. For households, however, the acceleration in food prices means the improvement in headline inflation may not yet translate into meaningful relief in the cost of everyday essentials.
The divergence between annual disinflation and renewed monthly food-price pressures will therefore remain an important indicator for Nigeria’s monetary policy, consumer spending and economic growth in the months ahead