Nigeria’s headline inflation rate declined further in July 2026, dropping to 15.43 per cent from 15.91 per cent in June, according to the latest Consumer Price Index report released by the National Bureau of Statistics (NBS).
The 0.48 percentage-point decline suggests that the overall pace of increase in consumer prices continued to moderate. However, the latest data also revealed renewed pressure on food prices, with food inflation accelerating considerably on a month-on-month basis during the period.
According to the NBS, food inflation rose to 5.56 per cent in July, compared with 3.75 per cent in June, representing a sharp 1.82 percentage-point increase.
The development highlights a growing divergence in the inflation picture: while the annual rate of price increases is slowing, households continued to face significant short-term increases in the cost of food and other essential items.
The statistics agency attributed the monthly increase in food inflation to rising average prices of several commodities, including crayfish, fresh pepper, onions, carrots, rice, water yam, tomatoes, garri, plantain, beef, eggs, guinea corn, ginger and plantain flour.
The NBS stated, “The Food inflation rate in July 2026 was 20.31 per cent on a year-on-year basis and stood at 26.20 per cent in the same month of the preceding year (July 2025). On a month-on-month basis, the Food inflation rate in July 2026 was 5.56 per cent, up by 1.82 percentage points from June 2026 (3.75 per cent).”
Annual food inflation moderates
Despite the sharp monthly increase, food inflation continued to ease significantly when measured against the corresponding period of the previous year.
Food inflation stood at 20.31 per cent year-on-year in July, down from 26.20 per cent recorded in July 2025.
This indicates that although food prices increased more rapidly in July than in June, the overall level of annual food price growth remained substantially lower than it was a year earlier.
The trend could offer some relief from the exceptionally high food inflation recorded during the previous year, although the renewed monthly acceleration suggests that food costs remain a major challenge for households.
Core inflation also declines
The moderation in headline inflation was accompanied by a decline in core inflation, which excludes volatile agricultural products and energy prices.
Core inflation fell to 14.97 per cent year-on-year in July, compared with 23.95 per cent recorded in July 2025. On a monthly basis, core inflation slowed considerably to 0.15 per cent from 1.66 per cent in June.
The NBS said, “The ‘All items less farm produce and energy’ or Core inflation, which excludes the prices of volatile agricultural products and energy, stood at 14.97 per cent in July 2026 on a year-on-year basis, a decline of 8.98 per cent when compared to the 23.95 per cent recorded in July 2025.”
The decline in core inflation indicates that price pressures outside food and energy also moderated during the month, contributing to the broader slowdown in headline inflation.
Consumer Price Index rises
Despite the lower inflation rate, the Consumer Price Index itself increased during the month. The CPI rose to 145.3 points in July from 143.0 points in June, representing a 2.2-point increase.
The NBS reported that monthly headline inflation stood at 1.57 per cent in July, down from 1.66 per cent in June.
“This means that in July 2026, the rate of increase in the average price level was lower than the rate of increase in the average price level in June 2026,” the agency stated.
The 12-month average headline inflation rate also declined sharply to 16.89 per cent in July, compared with 29.10 per cent in July 2025.
Wide differences across states
Food price pressures continued to vary considerably across the country, with some states recording significantly higher rates of food inflation than others.
Adamawa recorded the highest year-on-year food inflation at 51.36 per cent, followed by Katsina at 30.84 per cent and Zamfara at 30.65 per cent.
At the lower end of the scale, Borno recorded negative food inflation of 0.31 per cent, while Nasarawa and Kebbi recorded 6.88 per cent and 12.50 per cent, respectively.
On a month-on-month basis, Adamawa also recorded the highest food inflation at 17.02 per cent, followed by Lagos at 13.48 per cent and Borno at 13.26 per cent. Jigawa, Kebbi and Bauchi, however, recorded monthly declines in food inflation.
The contrasting figures across states underscore the uneven nature of food price movements in Nigeria, with consumers in some parts of the country facing substantially higher increases than those in others.
The July figures come as the Federal Government and monetary authorities continue efforts to contain inflation following the significant price pressures triggered by economic reforms introduced since 2023.
While the continued decline in annual headline and core inflation points to a broader easing of inflationary pressures, the sharp rise in monthly food inflation suggests that the cost of basic food items remains a critical concern for Nigerian households.