Nigeria Inflation Softens for 2nd Month

The annual inflation rate in Nigeria rose for a third straight month to 15.93% in May 2026, marking the highest since last November, from 15.69% in the previous month. Food inflation, the largest component of the inflation basket, accelerated for the fourth month to 17.8% from 16.6% in April, alongside transport costs, up 17.1% from 16%, partly driven by the continued pass-through of the March fuel price shock linked to the Middle East conflict. Prices also continued to increase for health (18.7% vs 18.9%), restaurants and accommodation services (24% vs 27.9%), and personal care, social protection and miscellaneous goods and services (17.8% vs 18.5%). In contrast, inflation notably softened for information and communication (7.4% vs 8.4%). Meanwhile, the core inflation rate, which strips out the volatile prices of agricultural produce and energy, rose by 16.82% from 15.86% in the month before. On a monthly basis, the CPI went up by 1.75% in May, easing from a 2.13% gain in April.

Nigeria’s annual inflation rate rose for a second straight month to 15.69% in April 2026, the highest since last November, from March's 15.38%. This partly reflected continued pass-through from the March fuel price shock linked to the Middle East conflict, which pushed up food prices and affected the exchange rate. Food inflation, the largest component of the inflation basket, quickened for the third month to 16.06% in April, with increases seen across key staples, including millet, yam flour, ginger, beef, garri, tubers, pepper, among others. Transportation prices rose by 16%, following a 16.9% surge in March. Additional upward pressure came mostly from restaurants & hotels (27.9% vs 25.2%) and health (18.9% vs 20.1%). However, the core inflation rate, which strips out the volatile prices of agricultural produce and energy, eased to 15.86% in April from 16.21% in the month before. On a monthly basis, the CPI index advanced by 2.13%, after a 4.18% jump recorded in the prior month.

Nigeria’s annual inflation rate rose slightly to 15.38% in March 2026 from 15.06% in February. Food inflation, the largest component of the inflation basket, accelerated for a second month to 14.31% from 12.12%, while transport prices rose even more sharply, up 16.9% from 14.7% in February. The Middle East crisis has triggered a sharp increase in domestic fuel costs. Prices also increased significantly for miscellaneous goods & services (24.5% vs 21.2%), but slowed for some categories, notably housing & utilities (10.2% sv 18.8%), alcoholic beverages & tobacco (4.5% vs 9.4%) and clothing & footwear (8.5% vs 16.1%). The core inflation rate, which strips out the volatile prices of agricultural produce and energy, quickened to 16.21% in March from 15.88% in February. On a monthly basis, prices climbed by 4.2%, marking the steepest increase since January 2025, largely driven by transportation costs (4% vs -0.3%).