[REVISION HISTORY]

Nigeria inflation eases as food inflation drops in August

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2026-09-20 18:03 UTC → 2026-10-04 17:58 UTC · added ~~removed~~

In July 2026, Nigeria’s headline inflation rate declined to 15.43%, a 0.48 percentage-point decrease from June. While core inflation fell to 14.97%, food inflation reached an 11-month high of 20.31%, driven by rising costs for staples like rice and beef. By August 2026, food inflation saw a significant year-on-year decline to 19.57%, down from 25.30% in August 2025. According to National Bureau of Statistics data, this drop was attributed to increased agricultural supplies during the harvest season. Economist Ephraim Audu noted that this trend represents disinflation rather than deflation, as prices are still rising, albeit at a slower rate. Despite improved production and falling farm-gate prices, Minister of Agriculture and Food Security Abubakar Kyari stated that consumers have not yet felt the full impact of lower costs. Kyari identified gaps in agro-processing and distribution, alongside population growth and high production costs, as primary reasons why market prices remain high. ~~Economic forecasts for August suggested headline inflation would likely hover between 15.01%~~ By October 2026, reports indicated severe financial strain across the population. Data from PiggyVest shows that 58% of adults earn below N100,000 monthly or have no income, and ~~15.94%. While some models anticipated~~ 60% of Nigerians lack emergency funds. The report highlights a decline ~~to 15.3% due~~ in savings rates, which dropped from 80% to ~~exchange-rate stability, others warned that high petrol and diesel~~ 50% of the population. Rising food costs ~~could offset harvest-related gains~~ continue to impact households, with the price of jollof rice increasing by ~~driving up transportation~~ 624% over the last decade, consuming roughly 60% of average household income. Although the minimum wage rose to N70,000 in 2026, its US dollar value fell from $65 to $53, reducing purchasing power. Additionally, skyrocketing real estate prices driven by inflation and ~~distribution expenses.~~ construction material costs are placing further pressure on earners.

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