Nigeria’s annual consumer inflation eased to 15.43% in July from 16.16% in June, marking the first decline in 10 months, the National Bureau of Statistics (NBS) reported on Tuesday.
The slowdown follows a sustained period of rising prices, with food inflation—accounting for over half of the consumer price index—also decelerating to 20.75% from 21.84% in June. Core inflation, which excludes volatile food and energy items, edged down to 13.71% from 13.85%.
Economists attributed the moderation to base effects, as price increases from the same period last year slowed the year-on-year comparison. Food prices, a key driver of inflation, benefited from improved supply conditions, particularly for staples like rice and grains, following recent harvests.
The central bank’s aggressive monetary tightening, including a 200-basis-point hike in May, has yet to fully transmit to consumer prices, analysts noted. The Monetary Policy Committee raised the benchmark interest rate to 26.75% in July, the highest in over two decades, as it seeks to anchor inflation expectations.
While the July reading suggests tentative progress, risks remain. Persistent naira weakness, elevated energy costs, and logistical bottlenecks continue to exert upward pressure on prices. The central bank’s next policy decision, due in September, will be closely watched for further guidance on inflation trajectory.
The NBS data, released after a delay, underscores the challenges facing Africa’s largest economy in balancing growth with price stability amid global and domestic headwinds.
