Nigeria’s headline inflation may be slowing, but the cost of food continues to rise, leaving ordinary Nigerians with less purchasing power.
Headline inflation fell to 15.43 percent in July 2026, down from 15.91 percent in June. However, food inflation moved in the opposite direction, rising for the sixth consecutive month to 20.31 percent.
For many households, the real impact is easiest to see in the market.
A ₦500 note that once covered several basic items now struggles to buy enough for even a simple meal.
Sachet water, for example, now sells for about ₦250 to ₦300 in some states, while individual sachets can cost around ₦20. A kilogram of loose white garri can also take up almost the entire ₦500.
The situation shows why falling headline inflation does not necessarily mean life is becoming cheaper.
Nigeria’s inflation rate may be increasing at a slower pace, but prices that have already gone up generally remain high. This means households are still dealing with the loss of purchasing power caused by years of rising prices.
The naira’s relative stability has also not been enough to reverse the pressure. Although the currency has strengthened compared with some levels recorded in 2025, the improvement has been overshadowed by accumulated inflation.
Some areas, including transport, clothing and miscellaneous household expenses, recorded modest improvements in July. But food remains the biggest concern for households because it takes up a large share of everyday spending.
For many Nigerians, therefore, the biggest sign of the economy is not the inflation figure announced in a report.
It is what ₦500 can buy at the market.
And for now, that amount is buying less than it used to.
