Nigeria's consumer price growth moderated for the third straight month in August 2026, with headline inflation settling at 15.39% compared with 15.43% in July, according to figures published by the National Bureau of Statistics.
The 0.04 percentage-point easing extends the current disinflation trend, while the annual gap narrowed sharply from the 23.14% recorded in August 2025, a difference of 7.75 percentage points. On a month-on-month basis, headline inflation fell to 0.71% from 1.57% in July, showing that prices were rising at a slower pace during the review month. The 12-month average rate stood at 16.30%, down from 28.32% a year earlier.
Urban inflation printed at 15.88% year-on-year, with the monthly measure dropping to 0.28% from 1.90%. The 12-month urban average was 16.28%, against 29.73% in August 2025. Rural inflation was lower on an annual basis at 14.23%, but its month-on-month rate climbed to 1.79% from 0.78%, signalling renewed short-term pricing pressure outside the cities.
Food inflation, a major driver of household costs, declined to 19.57% year-on-year from 25.30% a year earlier. Monthly food inflation fell 4.55 percentage points to 1.02% from 5.56% in July. The bureau linked the moderation to price changes across a range of staples, including:
- palm oil, carrots, pepper, onions and cassava flour - beef, yam flour, water yam and melon - fresh ginger, fresh fish, Irish potatoes and wheat grain - frozen chicken and turkey
Core inflation, which strips out farm produce and energy prices, eased to 13.29% from 22.93% in August 2025. On a monthly basis it turned negative at -0.06%, compared with 0.15% in July, while the 12-month average dropped to 17.30% from 26.15%.
The outturn came in below analyst projections. In a Nairametrics survey, forecasts ranged from 15.3% to 15.94%. Dr Ayodeji Ebo, Chief Executive Officer of MDU Capital Limited, had expected about 15.6%, while Damilare Asimiyu, Head of Research at FSDH Group, projected 15.94%, citing base effects but anticipating a slower monthly pace.
Despite the easing trend, affordability remains strained. The Central Bank of Nigeria's Inflation Expectations Survey found that 71% of respondents earning between N150,001 and N250,000 regarded inflation as high in July, versus 55.6% among those earning N350,001 to N450,000. The PiggyVest Savings Report 2025 added that about three in 10 Nigerians earned below N100,000 monthly, while 28% reported no income at all.
