Nigeria’s inflation falls to 24.48% in January 2025

• Published On: 19 February 2025 at 06:15

Nigeria's headline inflation rate fell to 24.48% year on year in January 2025, as the National Bureau of Statistics rebased the Consumer Price Index.

According to Channels Television, the Federation's Statistician-General, Adeyemi Adeniran, announced the rebased inflation figures at a press briefing in Abuja on Tuesday.

According to the most recent NBS report, urban inflation was 26.09%, while rural inflation was recorded at 22.15%. The report shows a decrease in the overall price level of goods and services compared to 34.80% in December 2024, as calculated using the previous methodology.

Adeniran, the Federation's Statistician-General, stated that the rebased Consumer Price Index included updating the reference year to 2024 and adjusting the basket of goods and services used to measure inflation.

This revision ensures that inflation figures are more accurate in reflecting Nigeria's current economic conditions and consumer spending habits.

The rebased food inflation index was 26.08% year on year in January 2025, down from 39.84% in December 2024 using the previous methodology.

This index tracks price changes in essential food items, which account for a significant portion of household spending in Nigeria.

In January 2025, the core inflation rate, which excludes volatile agricultural and energy prices, was 22.59% higher than the previous year.

This decline suggests that inflationary pressures in the economy's non-food sectors are easing.

The decline in inflation may indicate improved economic stability, but it does not imply immediate price cuts.

Instead, it represents a slower rate of price increases, which provides some relief to households and businesses facing high costs.