BREAKING: Nigeria’s headline inflation eases to 15.39% in August

Nigeria's headline inflation rate saw a slight decrease to 15.39% in August 2026, from 15.43% in the previous month, according to the National Bureau of Statistics (NBS). This decline marks the third consecutive month of disinflation in the country. Compared to August 2025, the rate dropped by 7.75 percentage points, to a much milder 0.04 percentage point decline from July. The primary reason for the moderation was a slowdown in food prices and core inflation, though rural inflation accelerated during the month.

On a month-to-month basis, headline inflation slowed to 0.71% in August, compared to 1.57% in July, highlighting a significant drop in the rate at which consumer prices were increasing. The average inflation rate over the past year reached 16.30%, down from 28.32% in the same period the previous year. Urban inflation eased to 15.88% year-on-year, while its monthly rate dropped sharply to 0.28% from 1.90% in July, with the 12-month average at 16.28%, compared to 29.73% in August 2025.

Rural inflation stood at 14.23% year-on-year, with its monthly rate rising to 1.79% from 0.78% in July, indicating a resurgence of short-term price pressure in rural areas.

Food inflation declined drastically to 19.57% year-on-year in August, down from 25.30% a year earlier. More notably, the monthly food inflation rate fell to 1.02% from 5.56% in July, a remarkable 4.55 percentage point reduction. Core inflation, excluding farm produce and energy prices, fell to 13.29% year-on-year in August, down from 22.93% in the same period last year.

On a monthly basis, core inflation turned negative at -0.06%, compared to 0.15% in July. The 12-month average core inflation rate was 17.30%, down from 26.15% a year earlier.

Despite some analysts' expectations of an acceleration in August, the actual figures revealed a downward trend. Surveyed analysts had projected headline inflation between 15.3% to 15.94%, with Damilare Asimiyu, Head of Research at FSDH Group, expecting a higher 15.94% due to base effects, but anticipating a slowdown in monthly inflation.

The August figures underscore a consistent downward trend across headline, food, and core inflation measures. However, the moderation came amidst weak household earnings, with the PiggyVest Savings Report 2025 revealing that about 30% of Nigerians earn below N100,000 monthly, and 28% reported having no income.