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CBN warns Middle East tensions, election spending could disrupt disinflation - PREMIUM TIMES
CBN stated that although the outlook for the domestic economy remained positive, external and domestic risks could undermine the moderation in inflation.
Omotoyosi Idowu
The Central Bank of Nigeria (CBN) expected Nigeria’s inflation rate to moderate further in the short- to medium-term. Still, it warned that prolonged geopolitical tensions in the Middle East and election-related spending could put renewed pressure on prices in Nigeria.
The projection was contained in the communiqué of the 307th meeting of the Monetary Policy Committee (MPC), which noted the continued decline in headline, food and core inflation.
The apex bank said Nigeria’s inflation rate is expected to moderate further in the short- to medium-term as improved food supply during the harvest season combines with foreign exchange stability and the delayed effects of previous monetary tightening.
Headline inflation slowed to 15.39 per cent in August 2026 from 15.43 per cent in July, while food inflation declined to 19.57 per cent from 20.31 per cent over the same period.
Core inflation also moderated to 13.92 per cent in August from 14.97 per cent in July.
CBN said the moderation in inflation reflected the impact of previous monetary policy tightening, sustained exchange-rate stability and improved inflation expectations.
