CBN sees inflation easing but warns of election and Middle East risks
The Central Bank of Nigeria said inflation is expected to keep easing in the short to medium term, citing improved food supply from the harvest season, foreign-exchange stability and the lagged impact of earlier monetary tightening. Headline inflation slipped to 15.39% in August 2026 from 15.43% in July, food inflation fell to 19.57% from 20.31% and core inflation dropped to 13.92% from 14.97%. The MPC communiqué warned, however, that prolonged geopolitical tensions in the Middle East and election-related spending ahead of the 2027 general election could reverse the disinflation trend and push prices higher. The CBN noted the domestic economy remains positive, with real GDP growth accelerating to 4.43% in Q2 2026 from 3.89% in Q1, driven by a 4.31% rise in the non-oil sector and a 7.31% increase in oil output. For Nigerians, the moderation in inflation means some relief on household budgets, but the upside risks signal that prices for imported goods, fuel and election-related goods may rise again. Watch the CBN's next policy signal, consider how price changes could affect your savings and spending, and factor possible election-season cost increases into your financial planning.