MON JUNE 15 2026-theGBJournal| Nigeria’s inflation rate accelerated for a third consecutive month in May, underscoring persistent price pressures in Africa’s largest economy despite signs that the pace of monthly increases is beginning to moderate.
Data released by the National Bureau of Statistics (NBS) on Monday showed headline consumer inflation rose to 15.93% year-on-year in May 2026, from 15.69% in April.
The latest reading reflects continued increases in the cost of food, services and other consumer goods, highlighting the challenge facing policymakers seeking to consolidate gains from recent macroeconomic reforms and monetary tightening measures.
While annual inflation continued its upward trajectory, month-on-month data suggested some easing in the speed of price growth.
Headline inflation slowed to 1.75% in May from 2.13% in April, indicating that prices were still rising but at a less rapid pace than in the previous month.
Food prices remained a key driver of inflationary pressures. Food inflation climbed to 16.96% year-on-year in May, compared with 16.06% in April, reflecting continued increases in the prices of staple food items and supply-chain costs.
However, on a monthly basis, food inflation moderated to 2.98% from 3.63% in April, suggesting some improvement in food price dynamics despite elevated annual readings.
Underlying inflationary pressures also intensified. Core inflation, which excludes volatile agricultural produce and energy prices, rose to 16.82% year-on-year in May from 15.86% in April.
The increase points to broader-based price gains across sectors of the economy and indicates that inflationary pressures are extending beyond food-related factors.
On a month-on-month basis, core inflation accelerated sharply to 1.94% in May from 1.03% in April, signalling stronger underlying demand and cost pressures. The rise in core prices is likely to reinforce concerns among monetary authorities that inflation remains entrenched despite recent efforts to stabilize the economy.
The latest inflation figures present a mixed picture for policymakers.
While the moderation in monthly headline and food inflation may offer tentative evidence that the pace of price increases is slowing, the continued rise in annual headline, food and core inflation suggests that households and businesses remain exposed to significant cost pressures.
The data is expected to be closely watched by investors and the Central Bank of Nigeria (CBN) as it weighs the outlook for interest rates, economic growth and price stability in the weeks ahead.
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