SPECIAL REPORT ON INFLATION & ECONOMY:
Nigeria’s food inflation rate eased for the first time in 2026, dropping to 19.57 percent in August from 20.31 percent in July, according to the nation’s Statistics, NBS.
The decline, driven by slower price increases during the main harvest season, also pushed headline inflation down marginally to 15.39 percent in August from 15.43 percent in July.
READ ALSO:Nigeria’s Inflation Falls To 15.43 As Worries On Food Prices Remain
According to NBS, “This shows that the average prices of food items are increasing at a decreasing rate in August 2026”
But the rising cost of living typified by rising petrol pump price and declining purchasing power, among others, have left some households battling for survival.
Data from the NBS Consumer Price Index report for August released Monday shows food inflation slowed month-on-month to 1.02 percent from 5.56 percent in July, indicating prices are still rising but at a much slower rate.
What The Data Is Saying:
Food inflation stood at 19.57 percent year-on-year in August, compared with 25.30 percent in the corresponding period of 2025. In July 2026, it was 20.31 percent.
Headline inflation – which measures average price of goods and services – stood at 15.39 percent in August, down from 15.43 percent in July 2026 and 23.14 percent in August 2025. 17a6
On a month-on-month basis, headline inflation slowed to 0.71 percent from 1.57 percent in July. 17a6
Biggest Contributors:
Food and non-alcoholic beverages remained the largest contributor to annual inflation, accounting for 6.16 percentage points, followed by restaurants/accommodation, transport and housing. 17a6
Why Food Prices Slowed:
Some analysts say this is harvest season, with the attendant increased supply of tubers, grains, vegetables.
They also attributed to development to the effect of the base year as high prices in August 2025 are now falling out, and of course the relative of the local currencyMaira as well as foreign exchange in August
But No Celebration Yet:
Despite YoY drop, prices still high, as CPI rose to 146.3 points in August from 145.3 in July.
Tjat means consumers still paying more, just slower increase.