WED JULY 15 2026-theGBJournal| Nigeria’s headline inflation rate edged lower in June, extending the recent moderation in consumer prices, although a sharp acceleration in food inflation underscored persistent pressure on household budgets.
Data released on Tuesday by the National Bureau of Statistics (NBS), showed headline inflation eased marginally to 15.91% year-on-year in June from 15.93% in May, a decline of just 2 basis points, suggesting overall price pressures remain broadly sticky despite tighter monetary conditions.
On a month-on-month basis, consumer prices increased by 1.66% in June, slowing from 1.75% recorded in May, indicating that the pace of price increases moderated slightly during the month.
The modest decline in the headline rate was largely driven by easing underlying inflationary pressures, as core inflation, which excludes farm produce and energy, fell sharply to 15.92% year-on-year from 16.82% in May.
Monthly core inflation also slowed to 1.66% from 1.94%, pointing to softer price increases across non-food categories.
However, the improvement in core inflation was offset by renewed pressure on food prices.
Food inflation accelerated to 17.52% year-on-year in June from 16.96% in May, while monthly food inflation climbed to 3.75%, up from 2.98% a month earlier.
The National Bureau of Statistics attributed the increase to higher prices of staple food items including fresh tomatoes, fresh pepper, crayfish, dried green peas, yam flour, water yam, beef, bananas, cassava flour, cowpeas, garri, Irish potatoes and yam tubers.
The divergence between easing core inflation and rising food prices highlights the uneven nature of Nigeria’s disinflation process.
While softer demand and monetary tightening appear to be tempering price pressures outside the food basket, supply-side constraints and seasonal factors continue to drive food costs higher.
The June reading marks another month in which headline inflation has remained broadly stable around the 16% level.
However, with food accounting for the largest share of household spending, the continued rise in food inflation is likely to keep pressure on consumers and could temper the gains from easing core prices.
The moderation in headline and core inflation may support expectations that underlying inflation is gradually easing, but the resurgence in food inflation suggests inflation risks remain tilted to the upside, particularly if agricultural supply disruptions persist.
The inflation outlook will remain closely tied to food supply conditions, exchange-rate stability and the effectiveness of ongoing monetary and fiscal measures aimed at containing price pressures.
X-@theGBJournal|Facebook-the Government and Business Journal|email:gbj@govbusinessjournal.com|govandbusinessj@gmail.com
