Nigeria’s headline inflation rate declined slightly to 15.39 per cent in August 2026, as food price pressures slowed during the month, according to the latest report from the National Bureau of Statistics (NBS).
The NBS disclosed this in its Consumer Price Index (CPI) and Inflation Report for August 2026 released in Abuja on Tuesday.
The report showed that headline inflation reduced by 0.04 percentage points from the 15.43 per cent recorded in July 2026.
Inflation Growth Slows Compared With July
According to the NBS, the month-on-month inflation rate stood at 0.71 per cent in August, representing a significant decline from the 1.57 per cent recorded in July.
The bureau explained that the development means that prices continued to rise, but at a slower pace compared with the previous month.
“This means that in August, the rate of increase in the average price level was lower than the rate of increase in the average price level in July,” the report stated.
On a year-on-year basis, inflation declined to 15.39 per cent in August 2026, compared with 23.14 per cent recorded in August 2025.
Food Inflation Drops to 19.57%
Food inflation, which remains one of the biggest drivers of household expenses, also recorded improvement.
The NBS reported that food inflation stood at 19.57 per cent year-on-year in August, compared with 25.30 per cent in August 2025.
On a monthly basis, food inflation dropped to 1.02 per cent, compared with 5.56 per cent recorded in July.
The agency attributed the decline partly to changes in the prices of several food items, including: palm oil, carrots, pepper, onions, cassava flour, beef, water yam, yam flour, fresh fish, Irish potatoes, frozen chicken and turkey.
Food, Transport Remain Major Inflation Contributors
The NBS identified the major contributors to headline inflation in August as:
Food and non-alcoholic beverages
6.16 per cent
Restaurants and accommodation services
1.99 per cent
Transport
1.64 per cent
Other sectors recorded smaller contributions, including:
- recreation, sports and culture — 0.05 per cent,
- alcoholic beverages, tobacco and narcotics — 0.06 per cent,
- insurance and financial services — 0.07 per cent.
Core Inflation Falls to 13.29%
The report showed that core inflation, which excludes volatile agricultural products and energy prices, declined to 13.29 per cent year-on-year in August.
This represented a reduction compared with 22.93 per cent recorded in August 2025.
On a month-on-month basis, core inflation stood at -0.06 per cent, compared with 0.15 per cent in July.
CPI Rises Slightly
The Consumer Price Index increased to 146.3 in August, compared with 145.3 recorded in July, representing a one-point increase.
The NBS said the movement reflected changes in prices across different categories of goods and services.
Lagos Records Highest Inflation Rate
The state-level analysis showed significant differences in inflation levels across Nigeria.
The highest year-on-year headline inflation rates were recorded in:
- Lagos — 23.68%
- Zamfara — 22.56%
- Enugu — 22.06%
The states with the lowest year-on-year inflation increases were:
- Sokoto — 2.11%
- Kebbi — 3.72%
- Jigawa — 3.81%
Rivers Leads Monthly Inflation Increase
On a month-on-month basis, the highest inflation increases were recorded in:
- Rivers — 6.92%
- Osun — 5.61%
- Kano — 5.59%
Meanwhile, some states recorded declines, including:
- Anambra — 8.83% decline,
- Bauchi — 7.13% decline,
- Borno — 7.09% decline.
Food Inflation Highest in Adamawa
The NBS report showed that year-on-year food inflation was highest in:
- Adamawa — 38.85%
- Zamfara — 37.96%
- Bayelsa — 36.20%
The slowest rise in food inflation was recorded in:
- Borno,
- Jigawa,
- Kebbi.
On a monthly basis, food inflation was highest in:
- Katsina — 9.48%,
- Rivers — 8.86%,
- Osun — 8.32%.
What the Inflation Drop Means
The decline suggests that the speed of price increases is slowing, especially in food markets.
However, the reduction does not mean prices have returned to previous levels. It only indicates that prices are increasing at a slower rate compared with earlier periods.
Analysts typically consider inflation trends alongside income growth, employment, production levels and exchange-rate stability when assessing whether households are experiencing improved purchasing power.
