Nigeria’s Inflation Drops to 15.39% in August

Nigeria’s headline inflation rate dropped marginally to 15.39 per cent in August 2026.

The figure declined from 15.43 per cent recorded in July, extending the disinflation trend for a third straight month.

The National Bureau of Statistics released the latest data, showing a 0.04 percentage-point decline from July.

The August figure also represents a 7.75 percentage-point fall from the 23.14 per cent recorded in August 2025.

The moderation came as monthly price increases slowed, especially in food and core inflation.

However, rural inflation moved in the opposite direction during the month.

On a month-on-month basis, headline inflation fell to 0.71 per cent in August from 1.57 per cent in July.

The decline indicates a significant slowdown in the pace of consumer price increases during the period.

The average rate for the 12 months ending August stood at 16.30 per cent. That compares with 28.32 per cent recorded over the corresponding period a year earlier.

Urban inflation also continued to moderate, reaching 15.88 per cent year-on-year in August. Its monthly rate fell sharply to 0.28 per cent from 1.90 per cent in July.

The 12-month average urban rate stood at 16.28 per cent, against 29.73 per cent in August 2025.

Rural inflation, however, recorded a different pattern during the month.

The rate stood at 14.23 per cent year-on-year, while monthly inflation rose to 1.79 per cent.

It had stood at 0.78 per cent in July, pointing to renewed short-term price pressure in rural areas.

Food inflation also recorded a notable decline during the month.

The rate fell to 19.57 per cent year-on-year in August from 25.30 per cent a year earlier.

On a monthly basis, food inflation dropped to 1.02 per cent from 5.56 per cent in July.

That represents a 4.55 percentage-point reduction in monthly food price growth.

The NBS linked the moderation to movements in the prices of several food commodities.

They included palm oil, carrots, pepper, onions, cassava flour, beef and yam flour.

Other affected commodities included water yam, melon, fresh ginger, fresh fish and Irish potatoes.

Wheat grain, frozen chicken and turkey also recorded price movements during the period.

The slowdown in food inflation remains significant because food takes a large share of household spending.

It therefore has a direct effect on consumers’ purchasing power and living costs.

Core inflation also declined during August, further supporting the broader moderation in price pressures.

The measure fell to 13.29 per cent year-on-year from 22.93 per cent recorded in August 2025.

Core inflation also turned negative on a monthly basis at -0.06 per cent.

That compares with 0.15 per cent recorded in July.

The 12-month average core inflation rate stood at 17.30 per cent.

It was 26.15 per cent during the corresponding period in the previous year.

The August decline came despite expectations among some analysts that inflation could rise during the month.

Analysts surveyed by Nairametrics had projected headline inflation between 15.3 per cent and 15.94 per cent.

The Chief Executive Officer of MDU Capital Limited had projected a rate of about 15.6 per cent.

That forecast would have represented a slight increase from July’s 15.43 per cent.

Damilare Asimiyu, Head of Research at FSDH Group, had projected a sharper increase to 15.94 per cent.

He cited base effects but expected monthly inflation to slow during the period.

The latest figures therefore show a broader moderation across headline, food and core inflation.

Despite the decline, households continue to face significant pressure from the cost of living.

The Central Bank of Nigeria’s latest Inflation Expectations Survey reflected that concern among different income groups.

It showed that 71 per cent of respondents earning between N150,001 and N250,000 viewed inflation as high in July.

The figure compared with 55.6 per cent among respondents earning between N350,001 and N450,000.

Weak household earnings have also continued to compound the pressure on consumers.

The PiggyVest Savings Report 2025 found that about three in 10 Nigerians earned below N100,000 monthly.

The report also indicated that 28 per cent of respondents reported having no income.