‘Disinflation to Extend into September as Harvest Season Boosts Food Supply’
Esther Oluku Nigeria’s disinflationary trend is expected to continue into September, supported by improved food supply associated with the harvest season, according to Anchoria’s macro-economic update for the month of
Nigeria's disinflationary trend is projected to persist into September, buoyed by a surge in food supply stemming from the harvest season, according to Anchoria's economic outlook for August 2026. The firm highlighted that an abundance of staple crops in key production areas would likely temper the prices of cereals, tubers, vegetables, and other agricultural commodities, which have been major contributors to food inflation.
"We anticipate the disinflationary momentum to continue into September, driven by enhanced food supply resulting from the harvest period," the report indicated. The report also noted that a stable exchange rate and improved liquidity conditions would assist in keeping cost pressures in check for manufacturers and businesses reliant on imported inputs.
Nonetheless, the report cautioned that external risks could potentially decelerate the disinflationary process, especially in light of evolving geopolitical tensions in the Middle East. "Should there be sustained disruptions causing global energy markets to falter, leading to elevated oil prices, this could translate into higher costs for fuel and transportation, potentially counteracting the gains from improved food supply and exchange rate stability," the report cautioned.
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