Abuja: A renowned development economist, Prof. Ken Ife, has labeled Nigeria’s latest inflation figures as a paradox of conflicting narratives, with headline inflation slowing to 15.43 percent in July, while food price pressures accelerated. Ife expressed these views in an interview with the News Agency of Nigeria (NAN) in Abuja.
According to News Agency of Nigeria, the National Bureau of Statistics (NBS) reported that headline inflation decreased by 0.48 percentage points from 15.91 percent in June to 15.43 percent in July 2026. Core inflation, which excludes volatile agricultural produce and energy, also declined to 14.97 percent. However, food inflation saw a sharp month-on-month rise to 5.56 percent in July, from 3.75 percent in June, despite the year-on-year food inflation rate falling from 26.20 percent in July 2025 to 20.31 percent.
Ife, who is also a public policy analyst, attributed the moderation in headline inflation to lower energy prices and stability in the foreign exchange market. He noted that energy prices dropped by an average of 2.3 percent and highlighted the stability and gradual improvement of the exchange rate. Additionally, he observed that there were no increases in electricity tariffs in July, and fluctuations in petrol prices contributed to the movement in the headline figure.
The food component, however, presented a contrasting picture due to increases in farm-gate prices and imported processed food. Ife mentioned that supply chain disruptions and higher maritime insurance costs contributed to rising prices. Farm-gate food prices alone rose by 4.66 percent month-on-month, while the overall food index, including imported food, increased by 5.56 percent.
Ife also pointed out the impact of transportation on food prices, as urban inflation stood at 16.12 percent year-on-year in July, compared to rural inflation at 13.77 percent. He emphasized the significance of transportation costs in moving goods from rural to urban areas.
Particularly concerning were the state-level figures, with Adamawa recording the highest year-on-year and month-on-month headline inflation at 33.03 percent and 12.48 percent, respectively. Adamawa’s food inflation was even higher at 51.36 percent, far exceeding the national food inflation rate of 20.31 percent year-on-year.
Ife described the situation in Adamawa as an “alarm bell” and urged authorities and the media to investigate the factors behind the unusually high inflation in the state. He expressed concern over the high food inflation during the harvest season and called for urgent measures to improve food supply and mitigate the impact on consumers. He suggested releasing strategic grain reserves to areas experiencing severe food-price pressures and deploying emergency interventions if flooding contributes to the situation.