Highlights
Headline Inflation continued to moderate in August, although the decline remained gradual. Year-on-year (YoY), Headline inflation eased from 15.43% in July to 15.39% in August 2026, while month-on-month (MoM) inflation dropped significantly from 1.57% to 0.71%. This shows that while the average prices of goods & services remained higher than a year ago, the pace of monthly price increases slowed considerably in August. The improvement was driven mainly by the slowdown in food prices and moderation in prices of goods & services outside food and energy.
Outlook
We expect the disinflationary trend to continue in the near term, although the rate of moderation will depend largely on developments in food prices, the exchange rate and energy.
The outlook for Food Inflation has improved as the harvest season progresses and the pace of monthly food-price increases has eased sharply. The approaching harvest should support the availability of seasonal agricultural produce and provide further relief to food prices in the coming months.
Also, the continued stability of the naira should support further moderation in Core Inflation by limiting the naira cost of imported goods and production inputs. However, the sustainability of this trend will depend on continued exchange-rate stability and the extent to which lower input costs are passed through to consumer prices.
Click here, “August 2026 – Harvest Season Eases Food Price Pressures”, to view the full report.
