Nigeria’s Inflation Rate Falls to 24.48% Following Rebasing, Says NBS
In a recent announcement, the National Bureau of Statistics (NBS) reported that Nigeria’s annual inflation rate dropped significantly to 24.48% in January 2025. This is a notable decrease from the 34.80% inflation rate recorded in December 2024. The NBS made this statement on Tuesday during the launch of the report on the rebasing of the Consumer Price Index (CPI) in Abuja.
The Statistician General of the Federation, Adeyemi Adeniran, explained that the update in the CPI was due to a new price reference period (base year) of 2024, with a weight reference period of 2023. The All-Items Index, which measures headline inflation, stood at 110.7 in January, contributing to the year-on-year inflation rate of 24.48%.
This drop in inflation was primarily driven by changes in key sectors, particularly food and non-alcoholic beverages, restaurants and accommodation services, and transport. As a result, food inflation saw a slight increase, reaching 26.08% year-on-year, with the food index for January 2025 standing at 110.03.
The rebasing of the CPI is an essential step in adjusting the inflation figure to more accurately reflect the current economic situation. It helps the NBS provide a more up-to-date view of the nation’s inflationary trends. The overall decline in the inflation rate brings a sense of relief to the Nigerian economy, offering a promising outlook for the coming months.
As Nigeria continues to battle inflationary pressures, the decrease in the inflation rate, following the rebasing of the CPI, suggests a shift toward stabilizing prices in key areas of daily life. It’s clear that, while food and transport costs are still rising, the economy is moving in a positive direction.
