BREAKING: Again, Nigeria’s Inflation Rate Falls
Nigeria’s headline inflation rate declined further to 15.43% in July 2026, representing a 0.48 percentage-point decrease from the 15.91% recorded in June.
The latest figure was contained in the Consumer Price Index (CPI) report released by the National Bureau of Statistics (NBS), which also showed a significant decline from the 24.94% recorded in July 2025.
Despite the decline in the year-on-year inflation rate, the CPI increased to 145.3 points in July from 143.0 points in June, representing a 2.2-point increase during the month.
What the report is saying
On a month-on-month basis, headline inflation stood at 1.57% in July 2026, down from 1.66% in June, indicating that the average price level increased at a slower rate during the month.
- The July headline inflation rate was 15.43%, down 0.48 percentage points from 15.91% in June.
- On a year-on-year basis, the rate was significantly lower than the 24.94% recorded in July 2025.
- Monthly inflation declined to 1.57% in July from 1.66% in June.
- The CPI increased to 145.3 points in July from 143.0 points in June.
The figures indicate that the annual pace of price increases continued to moderate, although prices still increased during the month.
Source: Infometrics
Urban inflation
Urban inflation stood at 16.12% year-on-year in July 2026, while the month-on-month rate declined to 1.90% from 2.13% in June.
- The July urban month-on-month rate declined by 0.23 percentage points from June.
- The corresponding 12-month average urban inflation rate stood at 16.81%.
- The 12-month average was 13.93 percentage points lower than the 30.74% recorded in July 2025.
The figures show that urban inflation remained above the national headline rate, although the annual rate continued to moderate.
Rural inflation
The rural inflation rate stood at 13.77% year-on-year in July 2026, below the urban rate during the period.
- Rural month-on-month inflation increased to 0.78% in July from 0.52% in June.
- The July rate represented a 0.25 percentage-point increase from the previous month.
- The corresponding 12-month average rural inflation rate stood at 16.72%.
- This was 10.33 percentage points lower than the 27.05% recorded in July 2025.
The increase in rural month-on-month inflation contrasts with the decline recorded in the urban measure during the month.
Food inflation
Food inflation stood at 20.31% year-on-year in July 2026, down from 26.20% recorded in July 2025.
- On a month-on-month basis, however, food inflation increased to 5.56% in July from 3.75% in June, representing a 1.82 percentage-point increase.
- The increase was attributed to changes in the average prices of crayfish, fresh pepper, fresh onions, carrots, rice and water yam.
- Other products cited included fresh tomatoes, garri, plantain, beef, eggs, guinea corn, ginger and plantain flour.
- The average annual food inflation rate for the 12 months ending July 2026 stood at 16.06%.
- This was 14.79 percentage points lower than the 30.85% recorded in July 2025.
The figures show that while annual food inflation continued to moderate, food prices recorded a faster monthly increase in July.
Core inflation, which excludes the prices of volatile agricultural produce and energy, stood at 14.97% year-on-year in July 2026.
- The rate was lower than the 23.95% recorded in July 2025, while the month-on-month core inflation rate declined to 0.15% from 1.66% in June.
- The 12-month average core inflation rate stood at 18.09% for the period ending July 2026, down 8.47 percentage points from the 26.56% recorded in July 2025.
Overall, the latest CPI figures show continued moderation in Nigeria’s annual headline, food and core inflation rates, although the monthly increase in food prices points to continued pressure in some food categories.
Context
In July, global inflation remained elevated amid disruptions linked to the ongoing Iran conflict and restrictions on shipping through the Strait of Hormuz.
- In the United States, however, inflation moderated slightly, with the annual rate easing to 3.4% in July from 3.5% in June, according to the U.S. Bureau of Labor Statistics.
- U.S. consumer prices rose by 0.1% month-on-month in July, indicating a slower pace of price growth during the month.
Energy prices fell 1.5% in July from the previous month but remained 14.7% higher than in July 2025, reflecting the impact of earlier wartime price increases.
Meanwhile, inflation in Iran surged beyond 88%, amid the economic disruptions associated with the conflict and a naval blockade.
