Nigeria’s inflation eases to 15.91% in June amid rising food prices — NBS

Nigeria’s headline inflation rate eased slightly to 15.91 percent in June, according to the National Bureau of Statistics (NBS). This marks a minor decrease from the 15.93 percent recorded in May, suggesting a slight slowdown in price pressures despite continuing upward trends in food costs. The data was released in the latest Consumer Price Index (CPI) report, highlighting a modest but positive shift in inflation dynamics. The NBS report indicated that the inflation rate for June 2026 was significantly lower than the 25.29 percent recorded in June 2025, marking a year-on-year decline. On a monthly basis, inflation slowed to 1.66 percent in June, compared to 1.75 percent in May. This suggests that the average price level increased more slowly during the month. The CPI index rose to 143.0 in June from 140.7 in May, reflecting a 2.3-point increase in the average price level. Despite the moderation in overall inflation, food prices remained a key driver of cost increases. Food inflation stood at 17.52 percent year-on-year in June, down from 25.41 percent in the same period of 2025. However, on a monthly basis, food inflation climbed to 3.75 percent, up from 2.98 percent in May. The rise was attributed to higher prices for several staple foods, including fresh pepper, tomatoes, crayfish, beef, garri, yam tubers, yam flour, cassava flour, cowpea, bananas, and Irish potatoes. Food and non-alcoholic beverages accounted for the largest contribution to headline inflation, adding 6.37 percentage points. Other significant contributors included restaurants and accommodation services (2.06 percentage points), transport (1.70 percentage points), housing, water, electricity, gas, and other fuels (1.34 percentage points), education (0.99 percentage points), and health (0.96 percentage points). Core inflation, which excludes volatile agricultural products and energy, stood at 15.92 percent year-on-year in June, down from 25.41 percent in the same period of the previous year. On a monthly basis, core inflation moderated to 1.66 percent, compared to 1.94 percent in May. The report also noted that the average headline inflation rate over the past 12 months ended at 17.63 percent, lower than the 29.82 percent recorded in June 2025. Similarly, the average annual food inflation rate dropped to 16.42 percent from 31.93 percent in the corresponding period of the prior year. Urban inflation stood at 16.08 percent year-on-year, while rural inflation was 15.48 percent. On a monthly basis, urban inflation increased to 2.13 percent from 1.99 percent in May, whereas rural inflation slowed to 0.52 percent from 1.17 percent. The report also revealed significant regional variations in inflation levels. Niger State recorded the highest annual all-items inflation rate at 42.23 percent, followed by Kogi (41.59 percent) and the Federal Capital Territory (39.91 percent). In contrast, Imo State had the lowest annual inflation rate at 19.47 percent, trailed by Ebonyi (20.79 percent) and Katsina (21.87 percent). For food inflation, Kogi State saw the highest year-on-year rate at 53.02 percent, followed by Niger (43.83 percent) and Benue (40.83 percent). The lowest food inflation rates were observed in Katsina (19.15 percent), Rivers (23.81 percent), and Imo (24.60 percent). These figures come against the backdrop of ongoing economic reforms aimed at stabilizing the nation's financial landscape. As Nigeria continues to implement measures to address inflationary pressures, the government faces the challenge of balancing economic growth with the need to curb rising living costs.