Inflation eases to 15.39% amidst rising cost of living

Nigeria's headline inflation dipped slightly to 15.39% in August, according to the National Bureau of Statistics. This figure is lower than the 15.43% recorded in July 2026 and significantly reduced from 23.14% in August 2025. The August 2026 inflation rate showed a marginal decrease of 0.04% compared to the July 2026 rate. On a month-on-month basis, the inflation in August 2026 decreased by 0.71%, which is 0.86% less than the July 2026 figure (1.57%).

The food inflation rate for August 2026 stood at 19.57% on a year-on-year basis and 25.30% on a month-on-month basis. The decline in food inflation was mainly due to changes in the average prices of commodities like Palm Oil, Carrots, Pepper, Onions, Cassava Flour, Beef, Yam Flour, Water Yam, Melon, Fresh Ginger, Fresh Fish, Irish Potatoes, Wheat Grain, Frozen Chicken, Turkey Meat, and Yam Flour.

In terms of state-wise inflation trends, Lagos, Zamfara, and Enugu experienced the highest year-on-year increases, while Sokoto, Kebbi, and Jigawa had the lowest. For the month-on-month changes, Katsina, Rivers, and Osun recorded the highest increases, whereas Taraba, Borno, and Bauchi had the lowest.

Despite the slight reduction in overall inflation, the Inflation Perception Index remained high at 39.6 points in August, down slightly from 40.0 points in July. Respondents expressed cautious optimism that inflationary pressures would ease in the coming months, with expectations projected to fall to 19.9 index points in the following month. However, the impact of inflation was felt differently across various socio-economic groups, with low-income and rural households bearing the brunt of rising prices.