Nigeria’s Inflation Drops to 15.43% in July Despite Sharp Rise in Food Prices

Nigeria’s inflation rate eased further in July, with the National Bureau of Statistics (NBS) reporting a headline inflation rate of 15.43 per cent, down from 15.91 per cent in June. The latest figure also represents a significant drop from the 24.94 per cent recorded in July 2025.

The data was contained in the NBS Consumer Price Index (CPI) report released on Monday.

On a month-to-month basis, headline inflation slowed to 1.57 per cent in July, compared to 1.66 per cent in June, indicating a slower rise in the general price level across the economy.

The July reading extends a recent downward trend after inflation peaked at 15.93 per cent in May before easing slightly to 15.91 per cent in June.

While the overall inflation rate continued to decline, food prices moved in the opposite direction, placing additional strain on household spending.

According to the NBS report, food inflation climbed to 20.31 per cent year-on-year in July, up from 17.52 per cent in June. Although higher than the previous month, it remained below the 26.20 per cent recorded in July 2025.

Food inflation also rose sharply on a monthly basis, increasing to 5.56 per cent in July from 3.75 per cent in June. This suggests that food costs grew at a much faster pace during the month, even as overall inflation moderated.

The contrast between headline inflation and food inflation highlights the continued financial pressure on many Nigerians, particularly households that spend a large portion of their income on food and essential goods.

Core inflation, which excludes farm produce and energy prices, fell to 14.97 per cent year-on-year in July from 15.92 per cent in June. It was also significantly lower than the 23.95 per cent recorded in the same period last year.

On a month-on-month basis, core inflation dropped sharply to 0.15 per cent, compared with 1.66 per cent in June, indicating a notable easing in price pressures outside the food and energy sectors.

The NBS report showed varying inflation patterns across urban and rural areas.

Urban inflation stood at 16.12 per cent year-on-year in July, compared with 25.26 per cent in July 2025. On a monthly basis, urban inflation slowed to 1.90 per cent from 2.13 per cent in June.

In rural communities, inflation was recorded at 13.77 per cent year-on-year, down from 23.95 per cent a year earlier. However, monthly rural inflation edged up to 0.78 per cent in July from 0.52 per cent in June.

The figures indicate that while inflation remains higher in cities, price increases in rural areas were relatively more moderate.

NBS data shows that headline inflation has steadily declined over the past year, dropping from 24.94 per cent in July 2025 to 15.43 per cent in July 2026.

The rate declined from 24.94 per cent in July 2025 to 23.14 per cent in August, 20.98 per cent in September, 18.97 per cent in October and 17.33 per cent in November. It fell further to 15.15 per cent in December before settling at 15.10 per cent in January 2026 and 15.06 per cent in February.

Inflation then began a gradual upward movement, reaching 15.38 per cent in March, 15.69 per cent in April, 15.93 per cent in May and 15.91 per cent in June.

The decline to 15.43 per cent in July marks a return to a downward trend after several months of increases. However, the surge in food inflation suggests that many households may not yet feel the full benefits of the easing headline inflation rate.

The NBS uses its rebased Consumer Price Index framework to track key indicators, including headline, food, core, urban and rural inflation.