Nigeria’s annual inflation rate declined to 24.48 per cent in January 2025 from 34.80 per cent in December 2024, following the adjustment of the Consumer Price Index (CPI), the National Bureau of Statistics (NBS) has reported.
The NBS explained that the rebasing exercise, which updated the reference basket of goods and services, was necessary to ensure that inflation measurement reflects current economic realities and consumer spending patterns. This marks the first CPI rebasing in Nigeria since 2009.
Despite the decline in the official inflation rate, the NBS clarified that this does not mean prices have dropped but rather that the rate of increase is now being measured against a more recent base year. Statistician-General Prince Adeyemi Adeniran stated, “The price estimate from NBS will be much more reflective of the current inflationary pressure experienced within the economy.”
Food inflation, which has been a major driver of Nigeria’s inflationary trend, fell to 26.08 per cent in January from 39.84 per cent in December. Similarly, core inflation, which excludes volatile food and energy prices, declined from 29.28 per cent to 22.59 per cent over the same period.
Nigeria has faced persistent inflationary pressures in recent months, driven by factors such as the removal of petrol subsidies, foreign exchange volatility, and supply chain disruptions. The sharp rise in inflation towards the end of 2024 had severely impacted households and businesses, increasing the cost of living and reducing purchasing power.
The NBS has assured that it will continue to refine its data collection and analysis processes to ensure accurate reporting in line with international standards.
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