Inflation Eases to 15.39% Amid Moderation in Food Prices - THISDAYLIVE

The Consumer Price Index (CPI), which measures changes in prices of goods and commodities, eased marginally to 15.39 per cent in August, from 15.43 per cent in July, National Bureau of Statistics (NBS) said yesterday.

According to the CPI report for the month under review, the result indicates a sharp slowdown in month-on-month price increases, as inflation remains significantly below the 23.14 per cent recorded in August 2025.

Month-on-month headline inflation dropped to 0.71 per cent in August, compared to 1.57 per cent in the preceding month.

Food inflation stood at 19.57 per cent year-on-year in August, from 25.30 per cent recorded in the corresponding month of 2025.

Month-on-month, the food index declined to 1.02 per cent, compared to 5.56 per cent in July, representing a 4.55 per cent reduction.

NBS attributed the slowdown mainly to changes in the average prices of several food items, including palm oil, carrots, pepper, onions, cassava flour, beef, yam flour, water yam, melon (egusi), fresh ginger, fresh fish, Irish potatoes, wheat grain, frozen chicken, and turkey meat.

Essentially, the easing food-price pressures played a significant role in the marginal decline in headline inflation rate during the review month.

At the divisional level, food and non-alcoholic beverages remained the biggest contributor to inflation, accounting for 6.16 per cent, followed by restaurants and accommodation services 1.99 per cent, and transport, which contributed 1.64 per cent inflation.

However, recreation, sport, and culture contributed 0.05 per cent; alcoholic beverages, tobacco and narcotics, 0.06 per cent; while insurance and financial services accounted for 0.07 per cent.

Core inflation, which excludes volatile agricultural produce and energy prices, stood at 13.29 per cent year-on-year in August, showing moderation during the review period.

On a monthly basis, the core index stood at -0.06 per cent, compared to 0.15 per cent in July.

On monthly basis, farm produce recorded inflation of 1.35 per cent; imported food, 0.91 per cent; goods, 0.45 per cent; services, 0.12 per cent, while energy recorded a negative inflation rate of -0.36 per cent.

On a year-on-year, farm produce recorded the highest rate at 21.52 per cent, followed by services at 15.38 per cent, goods at 14.74 per cent, imported food at 12.82 per cent, and energy at 4.69 per cent.

Urban inflation stood at 15.88 per cent year-on-year in August, while the monthly rate fell to 0.28 per cent from 1.90 per cent in July.

Rural inflation was lower at 14.23 per cent year-on-year, although its monthly rate increased to 1.79 per cent from 0.78 per cent in July.

At state level, Lagos recorded the highest year-on-year headline inflation at 23.68 per cent, followed by Zamfara at 22.56 per cent and Enugu at 22.06 per cent.

Sokoto recorded the lowest year-on-year headline inflation at 2.11 per cent, followed by Kebbi at 3.72 per cent and Jigawa at 3.81 per cent.

On a month-on-month, Rivers recorded the highest increase at 6.92 per cent, followed by Osun at 5.61 per cent, and Kano at 5.59 per cent.

However, Anambra, Bauchi and Borno recorded negative monthly inflation rates of -8.83 per cent, -7.13 per cent and -7.09 per cent respectively.

Year on year, food inflation was highest in Adamawa at 38.85 per cent, followed by Zamfara at 37.96 per cent, and Bayelsa at 36.20 per cent.

Borno recorded a negative year-on-year food inflation rate of -4.04 per cent, while Jigawa and Kebbi recorded -0.23 per cent and 3.47 per cent, respectively.

On monthly basis, Katsina recorded the highest food inflation at 9.48 per cent, followed by Rivers at 8.86 per cent and Osun at 8.32 per cent.

Taraba, Borno and Bauchi, however, recorded negative monthly food inflation rates of -12.42 per cent, -12.15 per cent and -8.88 per cent respectively.

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