Inflation Falls to 15.39% in August 2026, But Nigerian Food Prices Remain High

Nigeria’s headline inflation eased to 15.39% in August 2026 from 15.43% in July, the National Bureau of Statistics (NBS) reported. The decline was just 0.04 percentage points. Month-on-month inflation fell to 0.71% from 1.57% in July, suggesting prices are rising more slowly, not falling.

Food inflation remained the biggest pressure point. It stood at 19.57% year-on-year in August, meaning average food prices were still substantially higher than a year earlier. Month-on-month food inflation dropped sharply to 1.02% from 5.56% in July.

What Drove Food Prices

The NBS said changes in prices of palm oil, pepper, onions, beef, yam flour, water yam, egusi, fresh fish, Irish potatoes, wheat, frozen chicken and turkey contributed to the moderation. For consumers buying staples such as rice, yam and other household necessities, the figures signal slower price increases rather than a broad return to cheaper food.

Core Inflation Falls Sharply

Core inflation, which excludes volatile agricultural produce and energy prices, dropped to 13.29% year-on-year, compared with 22.93% in August 2025. The core index recorded negative inflation of 0.06% month-on-month, compared with a 0.15% increase in July. The NBS data showed businesses could get some relief if underlying cost pressures continue to ease and household purchasing power gradually improves.

Cost of Living Varies by State

Inflation pressures varied widely nationwide. Urban inflation stood at 15.88% year-on-year, compared with 14.23% in rural areas. Rural month-on-month inflation accelerated to 1.79% from 0.78%, while urban monthly inflation slowed sharply to 0.28%.

Lagos recorded the highest year-on-year headline inflation at 23.68%, followed by Zamfara at 22.56% and Enugu at 22.06%. Sokoto had the lowest at 2.11%, followed by Kebbi and Jigawa. Food inflation showed even sharper differences. Adamawa recorded the highest annual food inflation at 38.85%, followed by Zamfara at 37.96% and Bayelsa at 36.20%.

The NBS cautioned that direct state-to-state comparisons can be misleading because consumption patterns and CPI weights differ.

What It Means

For households, the broader message is clear: inflation is slowing, but the cost-of-living squeeze has not disappeared, The Guardian reported. Food prices remain elevated, meaning consumers may need a sustained period of slower inflation before the improvement becomes more noticeable in their daily spending.

The NBS earlier reported that Nigeria's headline inflation rate eased to 15.43% year-on-year in July 2026, down from 15.91% in June. The July inflation rate represented a 0.48 percentage-point decline from the rate recorded in June 2026.