Nigeria's inflation split widens as healthcare costs surge despite food price relief

Inflation in Nigeria showed mixed trends in January 2026. While overall price growth slowed, healthcare costs surged far above the general rate. The gap between medical expenses and other goods widened significantly over the past year.

The headline inflation rate dropped to 15.10% year-on-year in January 2026, down from previous months. On a month-on-month basis, prices even fell by 2.88%, signalling a short-term easing. Core inflation, which excludes volatile items like food and energy, also declined to 17.72%.

Food inflation slowed sharply to 8.89%, offering some relief to households. But healthcare costs moved in the opposite direction. Health inflation jumped from 20.09% in January 2025 to 30.35% a year later—more than double the headline rate.

The rise was driven by both goods and services. Health services alone saw a 22.17% increase, while medical goods inflation reached 11.03%. Together, the health sector added 0.91 percentage points to the overall inflation figure. Despite government efforts to cut out-of-pocket medical spending, costs continued to climb.

The latest figures reveal a split in Nigeria's inflation picture. Lower food and core inflation suggest some stability, but healthcare remains a growing financial strain. With medical costs rising at over twice the general rate, households face an uneven burden in managing essential expenses.