The Centre for the Promotion of Private Enterprise (CPPE) has expressed concern over Nigeria’s food inflation rate of 16.96 per cent, warning that rising food prices continue to erode household purchasing power despite broader signs that inflationary pressures are easing.

In a policy brief released on Monday, the CPPE said the rate reflects the impact of recent geopolitical tensions in the Middle East on global energy markets and supply chains.

“Food inflation at 16.96 per cent remains particularly concerning, as it continues to outpace headline inflation and weaken household purchasing power,” it said.

The comments came after the National Bureau of Statistics (NBS) on Monday reported that Nigeria’s headline inflation rate rose slightly to 15.93 per cent in May 2026 from 15.69 per cent in April.

The organisation, led by Muda Yusuf, however, said that a closer look at the data showed a more positive trend, with the pace of price increases slowing compared to previous months.

Headline inflation moderated on a month-on-month basis from 2.13 per cent in April to 1.75 per cent in May, while food inflation eased from 3.63 per cent to 2.98 per cent.

CPPE said this suggests that although prices are still rising, they are increasing at a slower rate than before.

“The current inflation rate remains significantly below the 26.06 per cent recorded in May 2025, underscoring the substantial disinflation achieved over the past year,” Mr Yusuf said.

Despite the moderation, the CPPE said food, transport, housing, energy, health and education continue to account for about 87 per cent of overall inflation, placing the greatest burden on ordinary Nigerians.

It said food inflation remains particularly troubling because it directly affects the welfare of all household and living standards.

Nigeria has struggled with high food prices in recent years due to insecurity, high transportation costs, exchange-rate pressures, rising energy costs and disruptions across agricultural value chains.

The latest inflation report points out that while overall inflation has slowed significantly from levels seen in 2024 and 2025, millions of households are still grappling with the high cost of essential goods. 

The CPPE identified insecurity in major food-producing regions as one of the biggest structural factors behind persistent food inflation.

According to Mr Yusuf, violence and instability in farming communities have displaced farmers, reduced cultivated land, disrupted supply chains and increased the cost of moving agricultural produce across the country.

These factors have contributed to lower farm food output and lesser supplies, keeping food prices high.

The organisation argued that addressing insecurity should be viewed not only as a national security priority but also as a key economic strategy for controlling inflation.