Nigeria inflation drops slightly as food prices rise before CBN rate decision
Nigeria’s headline inflation eased to 15.91 percent in June 2026, down from 15.93 percent in May—the first decline in three months. Month‑on‑month headline inflation was 1.66 percent, 0.09 points lower than May’s 1.75 percent. However, food inflation rose to 17.52 percent year‑on‑year, up from 16.69 percent, with month‑on‑month food inflation at 3.75 percent versus 2.98 percent in May. The rise was driven by higher prices for crayfish, fresh pepper, fresh tomatoes, dried green peas, yam flour, beef, banana, cassava flour, cowpea, garri, Irish potatoes and yam tuber. The data arrives ahead of the Central Bank of Nigeria’s 306th Monetary Policy Committee meeting set for July 20‑21, where policymakers will decide on the country’s interest rate, currently held at 26.60 percent since the 305th meeting. The mixed signal—overall inflation easing while food costs climb—means households face squeezed purchasing power even as headline inflation eases, and businesses must watch for any shift in borrowing costs. The MPC decision on July 21 will signal whether the bank leans toward easing, holding, or tightening, directly affecting loan rates, savings yields and pricing strategies across the economy.