Nigeria’s headline inflation rate rose for the second consecutive month, reaching 15.93% in May 2026, up from 15.69% recorded in April, according to the latest Consumer Price Index (CPI) report released by the National Bureau of Statistics (NBS).
The CPI increased to 140.7 points in May from 138.3 points the previous month, reflecting continued cost pressures on households and businesses across the country.
While the annual inflation rate accelerated, the month-on-month pace of price increases slowed to 1.75% from 2.13% in April, suggesting a slight moderation in the speed of price growth.
Urban-Rural and Food Inflation Trends
Urban inflation stood at 16.07% year-on-year, while rural inflation was recorded at 15.60%. Food inflation, a major driver of overall price levels, eased to 16.96% year-on-year from much higher levels a year earlier, though it remained elevated.
Core inflation, which excludes volatile food and energy prices, rose to 16.82% year-on-year. The NBS linked the latest food price movements to increases in items such as fresh onions, maize, egusi, water yam, cassava flour, crayfish, pepper, tomatoes, wheat grain, yam tubers, sweet potatoes, ginger, plantain, and cowpea.
Notably, 12-month average inflation rates across key categories showed significant improvement compared to the previous year, indicating some progress in containing long-term price pressures.
Global Factors at Play
The latest inflation uptick comes against the backdrop of renewed global commodity price volatility. Geopolitical tensions in the Middle East and disruptions in energy supply chains have pushed up costs for food and fuel-related products, feeding into domestic prices.
The World Bank Energy Index rose to 146.4 points, while the FAO Food Price Index increased by 1.6% to 130.7 points in May.
Economic Implications
The persistent rise in inflation continues to challenge policymakers as they attempt to balance price stability with economic recovery. High inflation erodes household purchasing power, increases business operating costs, and complicates monetary policy decisions.
Analysts expect the Central Bank of Nigeria to maintain a cautious approach, with sustained focus on liquidity management and foreign exchange stability to prevent further acceleration in price levels.
While the slower month-on-month increase offers a glimmer of hope, experts say sustained reduction in inflation will require stronger agricultural output, improved supply chain efficiency, and effective coordination between fiscal and monetary authorities.
The May inflation figures serve as a reminder of the difficult balancing act facing Nigeria’s economy as it navigates both domestic challenges and external shocks in an increasingly uncertain global environment.
