Nigeria’s inflation rate recorded a marginal decline in June 2026, offering a glimmer of relief for consumers and businesses navigating a challenging economic environment. According to the latest Consumer Price Index (CPI) report released by the National Bureau of Statistics (NBS), headline inflation fell slightly to 15.91% from 15.93% recorded in May. The figure also represents a significant improvement from the 25.29% inflation rate recorded in June 2025, signaling that overall price growth has continued to moderate over the past year.
Despite the easing headline figure, food prices remain a major source of concern for millions of Nigerians. Food inflation climbed to 17.52% on a year-on-year basis in June, while the month-on-month rate accelerated sharply to 3.75% from 2.98% in May. This suggests that although overall inflation is slowing, the cost of essential food items continues to rise, putting additional pressure on household budgets and reducing purchasing power across the country.
A closer look at the data shows differing inflation trends between urban and rural areas. Urban inflation stood at 16.08% year-on-year, with monthly inflation increasing to 2.13% from 1.99% in May. In contrast, rural inflation was recorded at 15.48% annually, while its month-on-month rate slowed significantly to 0.52%, indicating a softer pace of price increases in many rural communities compared to urban centers.
Core inflation, which excludes volatile agricultural products and energy prices, also continued its downward trend. The rate dropped to 15.92% in June 2026 from 25.41% recorded in the same period last year. On a monthly basis, core inflation eased to 1.66%, down from 1.94% in May. Meanwhile, state-level data revealed sharp differences in food price movements, with Kogi, Niger, and Benue recording the highest year-on-year food inflation rates, while Katsina, Rivers, and Imo experienced the slowest increases.
The latest figures are likely to strengthen expectations that the Central Bank of Nigeria (CBN) will maintain its cautious monetary policy approach in the coming months. While the continued decline in headline and core inflation points to improving economic stability, persistent food inflation remains a critical challenge. Analysts say factors such as exchange rate stability, lower energy costs, improved food supply, and ongoing agricultural interventions will play a key role in determining whether Nigeria can sustain its disinflation trend and ease the cost-of-living burden on citizens during the second half of 2026.
source: nairametrics
