Inflation Slows To 15.39% In August

Headline inflation rate moderated marginally to 15.39 per cent year on year in August 2026, down from 15.43 per cent recorded in July, indicating a continued easing in the pace of increase in consumer prices.

The latest figure represents a four basis points decline in the headline inflation rate, according to data contained in the latest inflation analysis. The August reading, however, was two basis points higher than the 15.37 per cent estimate.

On a month on month basis, the moderation was more pronounced as the growth in consumer prices slowed to 0.71 per cent in August, representing an 86 basis points decline from the 1.57 per cent recorded in July.

The slower monthly increase was driven largely by moderation in food prices, as well as a decline in the pace of increase in core inflation, which excludes farm produce and energy.

Food inflation declined by 75 basis points to 19.57 per cent year on year in August, compared with 20.31 per cent in July.

The development was also reflected in the month on month movement of the food index, which slowed by 1.02 per cent in August, compared with a 5.56 per cent increase recorded in July.

The moderation in food prices was attributed to lower price increases across a number of key food items, including palm oil, carrots, pepper, onions, cassava flour, beef, yam flour, water yam, melon, fresh ginger, fresh fish, Irish potatoes, wheat grain, frozen chicken and turkey meat.

Meanwhile, core inflation, which excludes farm produce and energy, also recorded a significant moderation during the month under review. Core inflation eased by 168 basis points to 13.29 per cent year on year in August, compared with 14.97 per cent in July.

On a month on month basis, the core index declined by 0.06 per cent in August, reversing the 0.15 per cent increase recorded in July.