CPPE Reaction on September Inflation Figures Dike Onwuamaeze

The Centre for the Promotion of Private Enterprise (CPPE) has welcomed the moderation in Nigeria’s headline inflation from 15.39% in August to 14.63% in September 2026, as a positive development that reinforced the disinflationary trend, strengthens macroeconomic stability and improves the prospects for investment, monetary easing and economic recovery.

CPPE, however, noted that the inflation report presented a mixed picture because headline and core inflation moderated,l while food inflation remained elevated at 19.59 per cent, while monthly energy inflation accelerated sharply to 5.38 per cent.

Commenting on the the September inflation figures, the Chief Executive Officer of CPPE, Dr. Muda Yusuf, said that it provided credible evidence of progress in macroeconomic stabilisation and indicated an easing of underlying price pressures.

Yusuf ascribed the decline to the relative stability of the foreign exchange market that helped to moderate imported inflation and improve business planning.

He said that this development has important implications for monetary policy.

“With inflation moderating, the case for further monetary easing has strengthened, particularly given the elevated cost of credit and its adverse consequences for investment, working capital and productive capacity.

“A sustained reduction in interest rates would improve credit affordability, ease financing pressures and support private-sector investment.

“The objective should be to support productive investment without compromising the gains in macroeconomic stability,” he said.

Yusuf said that food inflation remained a major threat to household welfare as food constitutes a disproportionately large share of expenditure among low-income households.

“Consequently, elevated food inflation erodes real incomes, deepens poverty risks and weakens household consumption.,” he said.

He also raised concern on the threat posed by energy inflation to price stability.

“One of the most significant warning signals is the acceleration in monthly energy inflation from 0.36 per cent in August to 5.38 per cent in September, an increase of 5.02 percentage points while energy inflation on a year-on-year basis stood at 10.85 per cent.

“The sharp monthly energy-price increase also raises the risk that the recent disinflationary gains could be reversed if higher energy costs persist.

‘The policy priority should therefore be to strengthen domestic energy resilience through reliable electricity supply, expansion of CNG infrastructure, greater adoption of electric mobility and improved domestic refining efficiency.”