Nigeria’s inflation rate drop in July strengthens case for rate cut

Nigeria’s headline inflation rate eased further in July, strengthening expectations that the Central Bank of Nigeria (CBN) could resume monetary policy easing as early as September. The Consumer Price Index (CPI), released by the National Bureau of Statistics (NBS), showed that headline inflation declined to 15.4 percent in July 2026, from 15.9 percent in June. The July reading was slightly lower than the 15.51 percent forecast by BusinessDay, pointing to a faster-than-expected moderation in price pressures. Read also: Nigeria’s inflation eases for second straight month to 15.43% On a month-on-month basis, headline inflation stood at 1.57 percent in July, indicating that prices continued to rise but at a relatively moderate pace. Food prices, however, remained a key source of pressure. The food inflation rate rose by 5.56 percent month-on-month in July, underscoring the continued vulnerability of household purchasing power to food-price movements. The latest moderation in headline inflation could provide the CBN with greater room to reconsider its tight monetary policy stance, particularly if the downward trend persists in August. The central bank’s next policy decision will be closely watched by investors, businesses and consumers, as a sustained decline in inflation could strengthen the case for a reduction in the Monetary Policy Rate (MPR). Join BusinessDay whatsapp Channel, to stay up to date Open In Whatsapp