Nigeria’s headline inflation rate fell for the second consecutive month in July 2026, declining to 15.43 per cent from 15.91 per cent in June.

The latest Consumer Price Index and inflation report released by the National Bureau of Statistics, NBS, showed that month-on-month headline inflation also declined slightly to 1.57 per cent in July from 1.66 per cent in June.

Despite the moderation in headline inflation, economists and financial analysts say Nigerians are yet to experience significant relief in the cost of living, as food prices and other essential household expenses remain elevated.

Food inflation rose for the sixth consecutive month, reaching 20.31 per cent from 17.52 per cent. The NBS attributed the increase to rising prices of commodities including crayfish, pepper, onions, carrots, rice, water yam, tomatoes, garri, plantain, beef, eggs, guinea corn, ginger and plantain flour.

At the state level, Adamawa recorded the highest all-items inflation rate at 33.03 per cent, while Nasarawa had the lowest at 7.86 per cent.

Adamawa also recorded the highest food inflation at 51.36 per cent, while Nasarawa recorded the lowest at 6.88 per cent.

Former President of the Chartered Institute of Bankers of Nigeria, CIBN, Dr Okechukwu Unegbu, however, disputed the official inflation figures, putting Nigeria’s actual inflation rate between 35 and 40 per cent.

Unegbu argued that the NBS figures do not adequately capture the realities Nigerians face in markets and at points of transaction. He maintained that a genuine decline in inflation should translate into lower prices and improved purchasing power for households.

Meanwhile, Professor of Accounting, Godwin Oyedokun, said the decline in headline inflation could indicate emerging macroeconomic stability but should not be interpreted as a reduction in the cost of living.

According to him, the recent disinflation is likely linked to factors including relative exchange-rate stability, tight monetary policy, easing core inflation and favourable base effects.

He stressed that while prices may be rising at a slower rate, they are not necessarily falling, noting that food and other essential household costs remain high.

The Chief Executive Officer of the Centre for the Promotion of Private Enterprise, CPPE, Dr Muda Yusuf, also attributed the moderation in headline inflation partly to improved macroeconomic stability and relative stability in the foreign exchange market.

However, Yusuf said the major pressures affecting ordinary Nigerians remain food prices, transportation, energy costs and utilities.

He called for stronger fiscal interventions by both federal and state governments to address these structural challenges and improve living conditions.

The analysts agreed that sustaining the downward trend in headline inflation would require continued macroeconomic stability, while measures must also be taken to reduce food prices, improve purchasing power and ensure that wages catch up with the elevated cost of living.