Nigeria’s Inflation Eases to 15.43% in July as Food Prices Accelerate

By Benson Daniel

Nigeria’s headline inflation rate eased to 15.43 per cent in July 2026 from 15.91 per cent in June, marking a second consecutive monthly decline in the overall pace of price increases.

The latest Consumer Price Index figures showed that headline inflation fell by 0.48 percentage points during the month, indicating a modest moderation in the rate at which prices increased across the economy. On a month on month basis, headline inflation also declined to 1.57 per cent in July from 1.66 per cent in June.

However, the headline improvement was accompanied by a sharp increase in food inflation, highlighting the continued pressure facing Nigerian households.

Food inflation rose to 20.31 per cent year on year in July, up from 17.52 per cent in June. On a month on month basis, food inflation climbed to 5.56 per cent from 3.75 per cent in the previous month.

The increase in food prices was driven by higher prices of several essential food products, including rice, water yam, plantain, crayfish, fresh pepper, onions, carrots, tomatoes, garri, beef, eggs, guinea corn and ginger.

The latest figures therefore present a mixed picture for the Nigerian economy. While the overall inflation rate is moderating, the sharp increase in food inflation means that many households may continue to experience significant pressure on their purchasing power.

Food remains one of the most visible components of household expenditure, particularly for lower income families. Consequently, improvements in headline inflation may not immediately translate into relief for consumers when the prices of basic food items continue to rise.

State level figures also showed significant variations in food price pressures across the country. Adamawa recorded the highest year on year food inflation rate at 51.36 per cent in July, followed by Katsina at 30.84 per cent and Zamfara at 30.65 per cent.

On a month on month basis, Adamawa also recorded the highest food inflation rate at 17.02 per cent, followed by Lagos at 13.48 per cent and Borno at 13.26 per cent.

The divergent movements between headline and food inflation underscore the complexity of Nigeria’s current inflationary environment. While some components of the consumer basket are experiencing slower price increases, food markets continue to face strong inflationary pressures.

The development comes amid continuing efforts by the government and other stakeholders to improve domestic food production, strengthen agricultural supply chains and reduce bottlenecks affecting the movement of farm produce from producers to consumers.

Weather conditions and seasonal factors could also remain important to food prices in the coming months, particularly as several parts of the country continue to experience heavy rainfall and flooding risks.

For businesses, slower headline inflation could gradually improve planning and reduce some cost pressures if the trend continues. However, higher food prices could continue to affect workers’ wage demands, household consumption and operating costs for businesses involved in food production and distribution.

The latest inflation figures are also likely to remain important to monetary policymakers as they assess the direction of interest rates and measures needed to maintain price stability.

For consumers, the key concern remains whether the moderation in headline inflation will eventually translate into lower prices at markets and greater purchasing power.

The July figures suggest that while Nigeria may be recording progress in reducing the overall rate of inflation, food price pressures remain a major challenge that could determine how quickly households feel the benefits of improving macroeconomic conditions.