Nigeria’s Food Inflation Drops for First Time in Seven Months Amid Harvest Season

Nigeria’s food inflation, the largest component of the consumer price index, eased in August for the first time in seven months, falling to 19.57 percent from 20.31 percent in July, according to the latest Consumer Price Index report by the National Bureau of Statistics.

The NBS disclosed this in its August 2026 CPI report released on Tuesday, as the country entered the peak of the harvest season.

The decline in food inflation helped drive a broader moderation in consumer prices. Headline inflation eased to 15.39 percent in August from 15.43 percent in July, representing a four-basis-point decline and the lowest rate since March.

It also marked the third consecutive month of moderation in headline inflation.

On a month-on-month basis, headline inflation slowed to 0.71 percent in August from 1.57 percent in July, the lowest monthly increase in seven months.

“This means that in August 2026, the rate of increase in the average price level was lower than the rate of increase in the average price level in July 2026,” the NBS said.

Food inflation stood at 19.57 percent year-on-year in August, down from 25.30 percent recorded in the same month of 2025.

The decline comes as improved harvests increase the supply of major food crops and ease some pressure on food prices. The relative strength of the naira has also supported the broader moderation in inflation.

Other categories recorded notable declines during the month.

Transportation inflation fell to 12 percent in August from 15.5 percent in July, while inflation for restaurants and hotels declined to 18.6 percent from 21.8 percent.

Miscellaneous goods and services also moderated to 12.7 percent from 15.6 percent, while clothing and footwear inflation dropped to 1.9 percent from 4 percent.

However, housing and utilities inflation moved in the opposite direction, rising to 16.9 percent in August from 12.6 percent in July.

Core inflation falls to five-year low

Core inflation, which excludes volatile agricultural produce and energy prices, also moderated for the third consecutive month.

It fell to 13.29 percent in August from 14.97 percent in July, reaching its lowest level since March 2021.

The moderation shows that underlying price pressures are also easing beyond the seasonal impact of food prices.

The latest inflation reading comes ahead of the central bank’s next policy meeting taking place next week, where the trajectory of consumer prices will be an important consideration in determining whether to continue cutting interest rates.

Nigeria’s urban inflation rate stood at 15.88 percent year-on-year in August, while rural inflation was lower at 14.23 percent.

On a month-on-month basis, urban inflation slowed to 0.28 percent in August from 1.90 percent in July.

The NBS said the corresponding 12-month average urban inflation rate was 16.28 percent in August, compared with 29.73 percent recorded in August 2025.

Rural inflation, however, accelerated on a monthly basis to 1.79 percent in August from 0.78 percent in July.

The corresponding 12-month average rural inflation rate stood at 16.02 percent, down from 26.47 percent in August 2025.

The divergent monthly movements between urban and rural prices suggest that the moderation in headline inflation was not uniform across the country.