Food prices remain high despite drop in inflation

Despite the reported drop in headline inflation according to the National Bureau of Statistics (NBS), Nigerians have expressed mixed feelings over the inflation numbers, saying prices of food items have continued to skyrocket while their purchasing powers remain constrained. Those who spoke with Daily Trust sharply differed with the NBS figure, decrying the high cost […]

Despite the reported drop in headline inflation according to the National Bureau of Statistics (NBS), Nigerians have expressed mixed feelings over the inflation numbers, saying prices of food items have continued to skyrocket while their purchasing powers remain constrained.

Those who spoke with Daily Trust sharply differed with the NBS figure, decrying the high cost of living in the country.

Amidst the NBS report, the Centre for the Promotion of Private Enterprise (CPPE) warned that Nigeria’s renewed surge in food inflation poses a serious threat to the gains of the Federal Government’s economic reforms, despite signs that headline inflation is stabilising.

On Wednesday, the NBS said Nigeria’s headline inflation dropped marginally to 15.91 per cent in the month of June.

It stated that the figure was a 0.2 percent reduction from the 15.93 percent recorded in May.

It added that June’s figure was lower than the 25.29 percent recorded in June 2025.

“The month-on-month headline inflation rate in June 2026 was 1.66 percent, which was 0.09 percent lower than the rate recorded in May 2026 (1.75 percent).”

However, amidst the reported drop in inflation, many Nigerians expressed mixed feelings over the rise in prices of goods. To them, the inflation numbers might have dropped, the cost of goods remains on the high side.

Speaking with Daily Trust, Biyaminu Idris, a resident of Abuja, said the price of goods are yet to drop as the increase in price of fuel is yet to come down as expected.

He lamented that the current cost of living is making it hard to save as most income is spent on food.

“How will anyone say there is a drop in inflation when prices of food are still high. The price of a basket of tomatoes is still sold at N13,000 in Lugbe and pepper too is on the high side.”

Another resident, Aisha Kabiru, also said the price of foodstuffs is still the same as there has been no reduction to celebrate the drop in inflation.

She urged the government to intervene as the cost of living is getting bad.

Other consumers noted that despite expectations of a reduction in the cost of living, food prices and transport fares have remained largely unchanged.

The proprietor of El-Berit Academy, Oluwayomi Oladeji, said the high cost of food items has affected the school’s budget for its end-of-session ceremony.

“I have not noticed any significant drop in prices. My food vendor told me that the price of a bag of rice keeps fluctuating.

“A bag of rice costs about N52,000, while a container of groundnut oil sells for about N5,200. As we prepare for our end-of-session party, we are budgeting about N100,000 for food,” she said.

Another consumer, Funmilola Dahunsi, said there has been little or no relief in the prices of food items and transportation.

“It depends on the item. The price of pepper has not come down, while some other food items are only slightly cheaper. Transportation fares have remained the same, so there is no major difference for now,” she said.

 

Rising food inflation threatens reform gains, CPPE warns

Meanwhile, the Centre for the Promotion of Private Enterprises (CPPE) warned that Nigeria’s renewed surge in food inflation poses a serious threat to the gains of the Federal Government’s economic reforms, despite signs that headline inflation is stabilising.

In a policy brief on the June 2026 inflation report released on Thursday, the Chief Executive Officer of the CPPE, Dr. Muda Yusuf, said the latest inflation figures showed that while overall inflation had largely plateaued, food prices had resumed an upward climb, worsening the country’s cost-of-living crisis.

“The dominant concern in the report is the renewed acceleration in food inflation,” Yusuf said.

He noted that year-on-year food inflation rose from 17.43 per cent in May to 17.52 per cent in June, while month-on-month food inflation jumped sharply from 2.98 per cent to 3.75 per cent.

“This suggests that food prices have resumed an upward trajectory after a brief period of moderation,” he said.

According to Yusuf, the trend has significant economic and social consequences because food inflation continues to hit households harder than any other component of inflation.

“Food inflation remains the greatest driver of the cost-of-living crisis, eroding household purchasing power, worsening poverty and food insecurity, and weakening the inclusiveness of the current reform programme,” he said.

“Sustained moderation in food prices is therefore critical to improving welfare and strengthening public confidence in the reform process.”

Although headline inflation eased marginally from 15.93 per cent in May to 15.91 per cent in June, the CPPE said the improvement masks persistent structural pressures within the economy.

“These changes indicate that headline inflation has largely plateaued,” Yusuf said, adding that the easing of core inflation reflected “the positive impact of exchange-rate stability and improved macroeconomic conditions in moderating imported inflation and broader non-food price pressures.”

The policy think tank argued that Nigeria’s inflation challenge remains largely structural rather than monetary, saying supply-side constraints continue to fuel food prices.

“The renewed increase in food inflation reflects persistent supply-side constraints, including insecurity, high transportation and logistics costs, elevated energy prices, rising fertilizer costs, supply-chain disruptions and imported inflation arising from recent geopolitical developments,” Yusuf said.

“These are challenges that monetary policy cannot resolve.”

He added that food, transportation, housing, utilities and energy account for about 72 per cent of current inflationary pressures, making them the sectors where government intervention would have the greatest impact.

The CPPE called on all levels of government to prioritise restoring security in farming communities, expanding irrigation and mechanised farming, improving access to affordable agricultural finance and inputs, reducing post-harvest losses, lowering transportation costs and making agriculture more technology-driven to boost productivity and food supply.

Yusuf also linked rising urban inflation to insecurity in rural communities, saying displacement of farming populations was increasing pressure on housing, transportation and essential services in cities.

Addressing insecurity in agricultural communities, he said, would not only improve food production but also ease inflationary pressures in urban centres.

On monetary policy, the CPPE maintained that the latest inflation figures do not justify further interest rate hikes.

He urged closer collaboration between monetary and fiscal authorities to implement structural reforms capable of expanding food supply, reducing production and logistics costs, strengthening domestic value chains and delivering lower inflation alongside stronger economic growth.