RFA Breakfast Paper - July 15, 2026

Nigeria's Inflation Holds Steady as Food Prices Offset Easing Core Pressures

Annual inflation in Nigeria was broadly unchanged at 15.91% in June 2026, compared with 15.93% in May, as the relative stability of the naira helped contain broader price pressures despite the inflationary effects of the Middle East conflict. Food inflation, the largest component of the consumer price index, accelerated for a fifth consecutive month to 17.52% from 16.96%, while housing and utilities inflation also increased to 11.19% from 9.79%. In contrast, price pressures eased across several categories, including transportation (15.62% vs. 17.09%), clothing and footwear (6.39% vs. 6.79%), miscellaneous goods and services (17.31% vs. 17.78%), restaurants and hotels (23.63% vs. 24.04%), and alcoholic beverages and tobacco (2.94% vs. 3.89%). Meanwhile, core inflation, which excludes volatile food and energy prices, slowed to 15.92% from a four-month high of 16.82% in May, suggesting that underlying inflationary pressures moderated during the month. On a monthly basis, consumer prices rose 1.66%, down from 1.75% in May and marking the smallest monthly increase in five months. Overall, the latest data point to a more balanced inflation picture, with persistent food price pressures offset by easing core inflation and improving exchange rate stability, although elevated food costs continue to pose a challenge for household purchasing power.

U.S. Equities Edge Higher as Softer PPI Eases Inflation Concerns

U.S. equity markets closed modestly higher on Wednesday after June's producer price index (PPI) came in below expectations, reinforcing signs of easing inflationary pressures. The softer data helped push Treasury yields lower, with the 10-year Treasury yield ending at 4.56% and the 2-year yield at 4.14%, as investors pared back expectations for further near-term Fed tightening. In commodities, oil prices edged higher as investors continued to monitor renewed geopolitical tensions in the Middle East. The inflation report showed wholesale price pressures continued to moderate in June. Headline PPI slowed to 5.5% year-over-year from 6.0% in May and declined 0.3% month-over-month, driven largely by a 1.4% drop in goods prices amid lower energy costs. Underlying inflation also showed improvement, with core PPI rising 0.2% for the month, below the 0.4% consensus forecast, suggesting broader price pressures are easing beyond the energy sector.

Bargain Hunting Fuels NGX Gains as Banking Stocks Lead The Rally

The Nigerian equity market closed in positive territory, extending gains as sustained bargain hunting in banking stocks and other mid-cap and blue-chip names boosted investor sentiment. The rally lifted the NGX All-Share Index by 0.25% (605.52 points) to 242,366.75, while market capitalization increased by ₦390.32 billion to ₦156.24 trillion. The performance reflected renewed buying interest across key sectors, with banking stocks providing the strongest support for the market's advance. Despite the positive close, overall trading activity slowed during the session. Total trading volume declined 24.96%, while the value of trades fell 44.46% compared with the previous session. Investors exchanged 476.34 million shares worth ₦29.63 billion across 40,992 deals, suggesting a more selective approach to buying. Sector performance remained broadly positive, with the Banking sector leading gains (+2.20%), followed by Insurance (+0.74%) and Oil & Gas (+0.003%). In contrast, the Consumer Goods (-0.27%) and Industrial Goods (-0.23%) sectors ended lower, partially offsetting the broader market strength.