Nigeria’s Inflation Eases to 15.91% in June Despite Rising Food Prices

Nigeria’s headline inflation rate eased marginally to 15.91% in June 2026 from 15.93% in May, extending the gradual slowdown in consumer price growth and reinforcing signs that inflationary pressures are moderating. However, persistently high food prices continue to pose a challenge for households and policymakers, suggesting that the Central Bank of Nigeria (CBN) may remain cautious about easing its tight monetary policy stance.
According to the latest Consumer Price Index (CPI) report, headline inflation was significantly lower than the 25.29% recorded in June 2025, reflecting improved price stability compared with a year earlier.
On a month-on-month basis, inflation slowed to 1.66% in June from 1.75% in May, indicating that consumer prices continued to rise, but at a slower pace than in the preceding month.
The moderation in headline inflation, however, masked renewed pressure on food prices. Food inflation rose to 17.52% year-on-year in June, while monthly food inflation accelerated to 3.75% from 2.98% in May. Because food accounts for the largest share of household spending in Nigeria, sustained increases in food prices continue to erode purchasing power, particularly for low- and middle-income consumers, even as overall inflation eases.
The mixed inflation picture also has implications for businesses. While moderating headline inflation could gradually improve planning, reduce cost pressures, and support consumer confidence, elevated food prices continue to raise operating costs for food processors, retailers, and hospitality businesses, while limiting discretionary spending by households.
For financial markets, the latest data strengthens expectations that the disinflation trend is taking hold but may not yet be sufficient to justify a shift in monetary policy. Investors and businesses will be watching the next Monetary Policy Committee meeting closely for indications of when the CBN could begin easing interest rates. Until food inflation shows sustained moderation, policymakers are likely to prioritise price stability over monetary easing, keeping borrowing costs elevated despite the broader slowdown in inflation.