Nigeria’s headline inflation may have stabilised in June, but rising food prices remain a major threat to households and the economy, the Centre for the Promotion of Private Enterprise (CPPE) has warned.
In a policy brief issued on Thursday, the Chief Executive Officer of CPPE, Dr Muda Yusuf, said the latest inflation figures showed that while overall inflation had largely plateaued, food inflation had resumed an upward trend, highlighting persistent structural problems in the economy.
The CPPE noted that headline inflation eased slightly from 15.93 per cent in May to 15.91 per cent in June, while month-on-month inflation moderated from 1.75 per cent to 1.66 per cent.
However, year-on-year food inflation rose from 17.43 per cent to 17.52 per cent, while month-on-month food inflation climbed sharply from 2.98 per cent to 3.75 per cent, marking the strongest monthly increase in several months.
“The June 2026 inflation report points to a broad stabilisation of headline inflation but also reveals a renewed escalation of food prices. While macroeconomic stability is gradually being consolidated, structural inflationary pressures within the real economy remain pronounced,” Yusuf said.
He said the renewed rise in food prices was significant because food inflation remained the biggest driver of the cost-of-living crisis, reducing household purchasing power, worsening poverty and food insecurity, and weakening the inclusiveness of the government’s reform programme.
Structural reforms, not tighter monetary policy
The CPPE said the June inflation report reinforced the view that Nigeria’s inflation challenge was mainly structural rather than monetary.
According to Yusuf, the renewed increase in food inflation reflects persistent supply-side constraints, including insecurity, high transportation and logistics costs, elevated energy prices, rising fertiliser costs, supply chain disruptions and imported inflation linked to recent geopolitical developments.
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He noted that food, transportation, housing, utilities and energy accounted for about 72 per cent of current inflationary pressures, adding that government efforts should focus on these sectors to achieve the greatest impact.
The CPPE also commended the Minister of Finance and Coordinating Minister of the Economy for setting up a Ministerial Advisory Committee to recommend practical measures for tackling Nigeria’s structural economic challenges and the cost-of-living crisis.
Yusuf said priority interventions by the federal, state and local governments should include restoring security in farming communities, expanding irrigation and all-season farming, accelerating mechanisation, promoting technology adoption, improving access to affordable agricultural finance and inputs, reducing post-harvest losses through better storage infrastructure, lowering transportation and logistics costs, and making agriculture more technology-driven to attract young people.
He also urged the government to sustain exchange-rate stability and deepen domestic petroleum refining to reduce foreign exchange demand for fuel imports, moderate imported inflation and strengthen macroeconomic resilience.
On monetary policy, the CPPE said the latest inflation data did not justify further interest rate hikes.
“The June inflation data do not warrant further monetary tightening. Headline inflation has largely stabilised, core inflation continues to moderate, and the principal drivers of inflation remain structural rather than demand-induced,” Yusuf said.
He added that the CPPE expects the Monetary Policy Committee to retain its current monetary policy stance at its next meeting while working with fiscal authorities to accelerate structural reforms aimed at expanding food supply, improving logistics, reducing energy and production costs, lowering debt service costs, strengthening domestic value chains and boosting productivity.
He said these measures offered the most sustainable path to lower inflation, stronger economic growth and improved living standards.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X