Nigeria's Inflation Drops, Yet Food Prices Remain High

In August 2026, Nigeria's inflation rate decreased marginally to 15.39% from 15.43% in July, according to the National Bureau of Statistics (NBS). Month-on-month inflation improved significantly, dropping to 0.71% from 1.57% in July.

However, food inflation remained a significant concern, recorded at 19.57% year-on-year, indicating that average food prices are still substantially higher than the previous year. Month-on-month food inflation saw a sharp decline to 1.02% from 5.56% in July.

The NBS noted that price changes in items such as palm oil, pepper, onions, and yam flour contributed to this moderation. Urban inflation was at 15.88% year-on-year, while rural inflation accelerated to 1.79%.

Lagos had the highest year-on-year headline inflation at 23.68%, while Adamawa recorded the highest annual food inflation at 38.85%. Despite the overall inflation slowdown, the cost-of-living pressures for households persist, indicating that a sustained period of slower inflation is needed for noticeable improvement in daily spending.