Health inflation 30.35% in January 2026, NBS reports, as medical costs outpace headline inflation and strain household budgets

The National Bureau of Statistics has reported that health inflation rose sharply to 30.35 per cent in January 2026, underscoring sustained cost pressures on households despite a moderation in headline inflation.

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The latest Consumer Price Index report showed that overall inflation eased to 15.10 per cent year-on-year in January 2026, down from 15.15 per cent in December 2025 and significantly lower than the 27.61 per cent recorded in January 2025. However, the health component continued its upward trajectory.

According to the data, the health index climbed from 109.4 points in January 2025 to 142.6 points in January 2026, translating to the 30.35 per cent annual increase.

By contrast, the all-items index rose from 110.7 points to 127.4 points over the same period, reflecting the slower 15.10 per cent headline rate.

The figures show that health inflation 30.35% was more than double the overall rate, highlighting the disproportionate burden of rising medical costs on families.

The health index rose steadily throughout 2025, moving from 111.1 points in February to 122.4 in March and 126.2 in April. It reached 135.3 in August and stood at 142.4 in December before edging slightly higher in January.

On a month-on-month basis, headline inflation recorded minus 2.88 per cent in January 2026, indicating that average prices declined compared with December.

Food inflation slowed markedly to 8.89 per cent year-on-year, while core inflation eased to 17.72 per cent.

Despite the broader moderation, health costs remained elevated. The division contributed 0.91 percentage points to the headline rate in January and carries a weight of 6.06 in the CPI basket, amplifying its impact on household expenditure.

The broader services index rose 22.17 per cent year-on-year, compared with goods inflation of 11.03 per cent.

The persistence of high medical costs reflects structural pressures, including rising import costs for pharmaceuticals, exchange rate pass-through effects, and elevated energy expenses faced by hospitals and clinics.

In June 2024, President Bola Ahmed Tinubu signed an executive order abolishing tariffs, excise duties and Value Added Tax on pharmaceutical machinery and raw materials in an effort to reduce drug prices.

However, stakeholders have said implementation has been slow, and medication prices have continued to surge, in some cases rising between 30 per cent and 100 per cent.

Public health physicians have warned that escalating treatment costs and reliance on out-of-pocket payments are pushing more Nigerian families below the poverty line.

They cautioned that many households now face stark choices between seeking timely medical care and meeting basic needs.

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The latest data suggest that while headline inflation may be easing, the intense pressure within the health sector remains a critical concern for policymakers and households alike.