Nigeria’s headline inflation rate fell marginally in August, extending its downward trend for a third straight month, although rising prices in rural areas continue to put pressure on households…..
Nigeria’s headline inflation rate declined slightly to 15.39 per cent in August 2026, from 15.43 per cent in July, according to the latest figures released by the National Bureau of Statistics, NBS.
The latest reading marks a 0.04 percentage-point reduction month-on-month and represents a much larger decline from the 23.14 per cent recorded in August 2025.
The NBS data showed that the moderation was supported by slower increases in food and core prices, with the pace of monthly price growth falling considerably during the month.
On a month-on-month basis, headline inflation dropped to 0.71 per cent in August, compared with 1.57 per cent in July, indicating a significant slowdown in the rate at which prices increased during the period.
The 12-month average inflation rate also continued to moderate, standing at 16.30 per cent in August, compared with 28.32 per cent recorded a year earlier.
Food prices show stronger moderation
One of the more notable developments in the latest figures was the slowdown in food inflation, which remains a major source of pressure on household budgets.
Food inflation fell to 19.57 per cent year-on-year in August, down from 25.30 per cent in August 2025.
The monthly food inflation rate also recorded a sharp decline, dropping to 1.02 per cent from 5.56 per cent in July.
The statistics agency linked the movement to changes in the prices of several food items, including palm oil, carrots, pepper, onions, cassava flour, beef, yam flour, water yam, melon, fresh ginger, fresh fish, Irish potatoes, wheat grain, frozen chicken and turkey.
The moderation is particularly significant given the weight of food expenditure in household budgets and its direct impact on consumers’ purchasing power.
Core inflation falls further
Core inflation, which excludes farm produce and energy prices, also recorded a substantial decline.
The measure stood at 13.29 per cent year-on-year in August, compared with 22.93 per cent in the corresponding month of 2025.
On a monthly basis, core inflation moved into negative territory at -0.06 per cent, compared with 0.15 per cent in July.
The 12-month average for core inflation also fell to 17.30 per cent, from 26.15 per cent recorded a year earlier.
Rural areas face renewed price pressure
Despite the broader moderation, the inflation picture was not uniform across the country.
Urban inflation eased to 15.88 per cent year-on-year, while monthly urban inflation fell sharply to 0.28 per cent from 1.90 per cent in July.
In contrast, rural inflation stood at 14.23 per cent year-on-year, but its monthly rate climbed to 1.79 per cent from 0.78 per cent in July.
The divergence highlights the continuing pressure faced by consumers in rural communities, even as the national inflation rate trends downward.
Disinflation yet to ease household pressure
Although the latest data point to continued progress in bringing inflation down, the figures do not necessarily mean that the cost-of-living crisis has eased for millions of Nigerians.
The lower inflation rate indicates that prices are rising more slowly; it does not mean that prices have returned to previous levels.
The Central Bank of Nigeria’s latest Inflation Expectations Survey also showed the extent of the pressure on households, with 71 per cent of respondents earning between N150,001 and N250,000 saying they perceived inflation as high in July.
At the same time, weak household earnings continue to limit the ability of many Nigerians to cope with elevated living costs.
The PiggyVest Savings Report 2025 found that about three in 10 Nigerians earned less than N100,000 monthly, while 28 per cent reported having no income.
With headline, food and core inflation all moderating, attention will now turn to whether the downward trend can be sustained and, more importantly, when the improvement in inflation figures will begin to translate into stronger purchasing power for households.
