Nigeria’s inflation rate fell to 15.43% in July 2026, offering some relief in the wider economy, but households faced a sharp rise in food prices during the month. New figures from the National Bureau of Statistics (NBS) show that although overall inflation slowed from June, the cost of many everyday foods increased much faster.
The headline inflation rate dropped by 0.48 percentage points from 15.91% in June to 15.43% in July. However, food inflation rose by 5.56% month-on-month, compared with 3.75% in June, highlighting the continuing pressure on family budgets.
The figures mean Nigerians should not interpret the fall in headline inflation as an indication that prices are falling generally. Inflation measures how quickly prices are increasing, so a lower rate normally means prices are still rising, but at a slower overall pace.
Food prices rise sharply despite lower headline inflation
According to the NBS Consumer Price Index report, several common food products became more expensive during July.
They included rice, tomatoes, fresh pepper, onions, carrots, crayfish, water yam, garri, plantain, beef, eggs, guinea corn, ginger and plantain flour.
Food inflation on a month-on-month basis rose from 3.75% in June to 5.56% in July, an increase of about 1.82 percentage points.
The development is important because food takes up a significant share of spending for many Nigerian households, particularly lower-income families.
However, the annual food inflation figure tells a different story.
Food inflation stood at 20.31% in July compared with 26.20% in July 2025, meaning food prices were still rising compared with a year earlier, but at a slower annual rate. The official NBS website also lists July’s food inflation at 20.31% and headline inflation at 15.43%.
The latest figures continue a period of changing inflation trends previously covered by New Daily Prime, when inflation rose to 15.38% in March after a lengthy period of decline.
What does the 15.43% inflation figure mean?
The Consumer Price Index, commonly called the CPI, tracks changes in the average prices households pay for a basket of goods and services.
Nigeria’s CPI increased to 145.3 points in July from 143.0 in June. Despite that increase, month-on-month headline inflation slowed slightly to 1.57% from 1.66% in June.
The NBS said this meant that “the rate of increase in the average price level was lower” in July than in June.
In simple terms, the general cost of goods and services continued to increase, but prices across the wider economy did not rise as quickly as they had in the previous month.
This distinction matters for consumers.
A fall in inflation from 15.91% to 15.43% does not mean an item costing ₦10,000 will automatically become cheaper. Instead, it suggests that the average rate at which prices are increasing has slowed.
That is why many households can continue to experience a high cost of living even when official headline inflation declines.
Core inflation also falls
Core inflation, another important measure watched by economists and the Central Bank of Nigeria, also eased.
Core inflation excludes items such as volatile agricultural products and energy because their prices can change sharply within a short period.
It fell to 14.97% year-on-year in July, compared with 23.95% in July 2025. On a monthly basis, core inflation slowed to 0.15% from 1.66% in June.
The decline will be closely watched by policymakers because sustained moderation in underlying inflation could influence future decisions on interest rates and other monetary measures.
The CBN has previously said controlling inflation remains one of its main policy priorities, as New Daily Prime reported.
Food inflation varies sharply across states
The July figures also show major differences between states.
Adamawa recorded the highest year-on-year food inflation at 51.36%, followed by Katsina at 30.84% and Zamfara at 30.65%.
Borno recorded the lowest annual figure at -0.31%, while Nasarawa stood at 6.88% and Kebbi at 12.50%.
Month-on-month food inflation was also highest in Adamawa at 17.02%, followed by Lagos at 13.48% and Borno at 13.26%. Jigawa, Kebbi and Bauchi recorded declines during the month.
Such differences underline why national inflation figures may not reflect exactly what individual households experience in their local markets.
Lower inflation, but pressure on households remains
The decline in headline inflation comes as the Federal Government and monetary authorities continue efforts to stabilise Nigeria’s economy following several years of high inflation, exchange-rate pressures and rising living costs.
Nigeria’s economy grew by 3.89% year-on-year in the first quarter of 2026, according to NBS figures previously reported by New Daily Prime.
The government has also argued that its economic reforms are intended to reduce inflation and create stronger long-term growth, although the effect on household purchasing power remains an important test.
For consumers, July’s figures therefore present a mixed picture.
Headline inflation is moving in the right direction, and core inflation has eased considerably compared with a year earlier. But the sharp monthly rise in food prices means millions of households may not yet feel much improvement when buying groceries.
Further falls in inflation would need to be accompanied by more stable food prices and stronger household incomes before the improvement in official economic figures translates into clear relief at markets and shops.
Readers can follow further coverage of Nigeria’s economy, inflation and living costs on New Daily Prime.
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