The Centre for the Promotion of Private Enterprise (CPPE) has said Nigeria’s June 2026 inflation report reflects improving macroeconomic stability but warned that rising food prices remain a major threat to household welfare and economic recovery.
In a policy brief released on Thursday, CPPE Chief Executive Officer, Dr. Muda Yusuf, noted that headline inflation eased marginally to 15.91 per cent in June from 15.93 per cent recorded in May, while month-on-month inflation moderated from 1.75 per cent to 1.66 per cent, indicating that overall inflation had largely stabilised.
However, the think tank expressed concern over the renewed surge in food inflation, describing it as the most significant feature of the latest inflation report.
According to the CPPE, year-on-year food inflation rose from 17.43 per cent in May to 17.52 per cent in June, 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 organisation warned that the resurgence in food prices could worsen the country’s cost-of-living crisis by eroding purchasing power, increasing poverty and food insecurity, and undermining public confidence in ongoing economic reforms.
Despite the rise in food prices, CPPE said the continued moderation in core inflation was encouraging, attributing the improvement to exchange rate stability and better macroeconomic conditions, which have helped reduce imported inflation and non-food price pressures.
The policy group also highlighted persistent inflationary pressures in urban areas, noting that urban inflation stood at 16.08 per cent year-on-year, above the national headline rate of 15.91 per cent, while month-on-month urban inflation increased from 1.99 per cent to 2.13 per cent.
It attributed the trend partly to population displacement caused by insecurity in rural communities, which has increased demand for housing, transportation, utilities and other essential services in urban centres.
CPPE stressed that tackling insecurity in farming communities would not only boost agricultural production but also help reduce inflationary pressures in cities.
The organisation maintained that Nigeria’s inflation challenge remains largely structural rather than monetary, citing insecurity, high transportation and logistics costs, rising energy and fertiliser prices, supply chain disruptions and imported inflation linked to global geopolitical developments as the key drivers of rising prices.
It noted that food, transportation, housing, utilities and energy account for about 72 per cent of current inflationary pressures, urging governments at all levels to prioritise interventions in these sectors.
CPPE commended the Minister of Finance and Coordinating Minister of the Economy for establishing a Ministerial Advisory Committee to recommend practical solutions to Nigeria’s structural economic challenges and the rising cost of living.
It called for increased investment in agricultural security, irrigation, mechanisation, technology adoption, affordable agricultural financing, improved storage facilities and lower transportation costs to strengthen food production and reduce inflation.
The organisation also urged the government to sustain exchange rate stability and deepen domestic petroleum refining to reduce dependence on fuel imports and strengthen macroeconomic resilience.
On monetary policy, CPPE said the June inflation figures do not justify further tightening by the Monetary Policy Committee (MPC), arguing that inflation has largely stabilised while its major drivers remain structural.
It expressed confidence that the MPC would retain its current monetary policy stance at its next meeting and urged closer collaboration between monetary and fiscal authorities to implement structural reforms capable of expanding food supply, reducing production costs, improving logistics and enhancing productivity.
According to the CPPE, such reforms represent the most sustainable path to lower inflation, stronger economic growth and improved living standards for Nigerians.
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