Highlights

For the third consecutive time this year, Headline Inflation rose to 15.93% year-on-year from 15.69% in April 2026. This was disclosed in the consumer index report for May 2026, released by the National Bureau of Statistics (NBS). While the annual figure recorded a slight uptick, monthly inflation moderated to 1.75%, compared to 2.13% in April, indicating that the pace of price increases slowed during the month. The moderation in month-on-month inflation suggests that price pressures, although still present, were less intense than those observed in the preceding month.

Outlook

The inflation outlook for June 2026 appears positive, supported by recent developments in the global oil market. Brent crude oil prices have declined to $87.33 per barrel, their lowest level in three months, following reports of a potential diplomatic agreement between the United States and Iran that could facilitate the reopening of the Strait of Hormuz and direct confrontation. The easing of geopolitical tensions has helped remove part of the risk premium previously embedded in crude prices. For Nigeria, lower global oil prices could translate into reduced costs of refined petroleum products, thereby easing transportation and logistics expenses, which are key drivers of consumer prices. If sustained, this could provide additional support for the recent moderation in inflation.

Click here, “May 2026 – Elevated Energy Prices Keeps Inflation High”, to view the full report.