Nigeria’s monthly inflation rate slowed sharply in September, with prices rising at a much slower pace even as underlying cost pressures persisted in some parts of the economy.
The National Bureau of Statistics said headline inflation fell to 14.63 per cent year-on-year in September 2026, from 15.39 per cent in August and 20.98 per cent in September 2025.
In its Consumer Price Index report released on Thursday, the NBS also reported that month-on-month headline inflation declined to 0.06 per cent in September from 0.71 per cent in August, indicating a marked slowdown in the pace of price increases.
Food prices provided some relief during the month. Month-on-month food inflation fell to -1.55 per cent in September from 1.02 per cent in August, supported by lower prices of items including local rice, maize flour, guinea corn flour, onions, tomatoes, palm oil and plantain.
However, annual food inflation remained broadly unchanged, edging up slightly to 19.59 per cent from 19.57 per cent in August. It was lower than the 20.16 per cent recorded in September 2025.
Core inflation, which excludes volatile agricultural produce and energy prices, also moderated on an annual basis to 12.95 per cent in September, compared with 22.11 per cent a year earlier.
But its month-on-month rate rose to 1.11 per cent from -0.06 per cent in August, suggesting that some underlying price pressures remain despite the fall in headline inflation.
The figures present a mixed picture for policymakers: annual inflation is easing and monthly food prices have declined, but the increase in monthly core inflation suggests that price stability has yet to be fully achieved.
The latest data follows the Central Bank of Nigeria’s decision in September to reduce its Monetary Policy Rate by 350 basis points to 23 per cent, signalling a shift towards a less restrictive monetary policy stance.
Investment firm Cowry Asset Limited described the inflation outlook as “cautiously positive”, citing easing food prices and lower annual inflation readings. It said the latest figures could give the CBN more room to consider further monetary easing, while warning that policymakers would need to monitor liquidity, exchange-rate stability and inflation expectations.
The decline in annual inflation marks further progress from the levels recorded a year earlier, although its impact on households will depend on whether the slowdown in price increases is sustained and translates into improved affordability of essential goods and services.
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