Nigeria’s headline inflation rate eased marginally to 15.39 per cent in August 2026, from 15.43 per cent in July, according to the latest Consumer Price Index report released by the National Bureau of Statistics (NBS).
The August figure represents a 0.04 percentage-point decline from the previous month and marks another moderation in the country’s inflation rate. It is also significantly lower than the 23.14 per cent recorded in August 2025.
According to the NBS, the slowdown was supported largely by a sharp moderation in the rate at which food prices increased during the month. However, the latest figures do not mean that prices have fallen. Rather, they indicate that prices continued to rise but at a slower pace than they did previously.
The month-on-month inflation rate recorded a more noticeable slowdown, falling to 0.71 per cent in August, compared with 1.57 per cent in July. The NBS said this means the average price level increased at a slower rate in August than it did in July.
Food inflation also moderated during the period, dropping to 19.57 per cent year-on-year from 20.31 per cent in July and 25.30 per cent in August 2025.
The monthly food inflation figure showed an even sharper slowdown, falling to 1.02 per cent in August from 5.56 per cent in July. The NBS attributed the development to changes in the average prices of several food 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.
Food and non-alcoholic beverages remained the biggest contributor to Nigeria’s annual inflation rate, accounting for 6.16 percentage points. Restaurants and accommodation services followed with 1.99 percentage points, while transport contributed 1.64 percentage points. Housing, water, electricity, gas and other fuels contributed 1.30 percentage points.
Core inflation, which excludes volatile agricultural produce and energy prices, also declined. It stood at 13.29 per cent year-on-year in August, compared with 14.97 per cent in July and 22.93 per cent in August 2025. On a month-on-month basis, core inflation was -0.06 per cent, compared with 0.15 per cent in July.
Despite the moderation, concerns remain over the sustainability of the decline, particularly as businesses continue to face pressure from energy and operating costs.
Organised Private Sector representatives have warned that higher energy costs could place fresh pressure on inflation in the coming months. Business groups have pointed to the effect of petrol, diesel, gas and other energy costs on transportation, manufacturing and the general cost of doing business.
The figures also show significant differences across the country. Lagos recorded the highest headline inflation rate at 23.68 per cent, followed by Zamfara at 22.56 per cent and Enugu at 22.06 per cent. Sokoto recorded the lowest headline inflation rate at 2.11 per cent. The NBS, however, cautioned that differences in consumption patterns and the weights assigned to items in the Consumer Price Index mean state-to-state comparisons should be interpreted carefully.
For households and businesses, the latest data provide evidence that the pace of price increases has slowed, but the cost of living remains a significant concern. The key question for the coming months will be whether the moderation can continue amid movements in energy, transportation and food prices.
