The Centre for Policy, Peace and Environment (CPPE) has identified food inflation as the primary obstacle to sustained price stability in Nigeria, despite a recent easing in the headline inflation rate.
The warning comes as Nigeria’s headline inflation decelerated to 15.91% in June, marking the first monthly decline in three months after rising to 15.93% in May.
While the aggregate figure suggests a marginal cooling, the CPPE argues that the underlying structure of inflation remains fragile, driven by persistent pressures in the food basket.
This divergence between headline trends and core cost drivers is a critical risk for investors and policymakers.
If food prices remain elevated, the recent dip in the headline rate may prove temporary, limiting the Central Bank of Nigeria’s ability to pivot toward rate cuts or other accommodative measures.
The persistence of food inflation also continues to weigh on household purchasing power and corporate input costs across the consumer sector.