In a significant economic shift, Nigeria’s headline inflation rate dropped to 24.48% in January 2025 following the rebasing of the Consumer Price Index (CPI), according to the National Bureau of Statistics (NBS). This marks a sharp decline from the 34.80% recorded in December 2024, providing a fresh perspective on the nation’s economic landscape.
Statistician-General Adeyemi Adeniran explained that the CPI rebasing, last conducted in 2009, was necessary to reflect contemporary consumption patterns and the rise of emerging sectors in the economy. The update aims to offer a more accurate representation of inflation trends and price movements across various goods and services.
Despite the notable decline in inflation, Adeniran clarified that prices have not decreased but are rising at a slower pace. Food inflation stood at 26.08%, while core inflation, which excludes volatile items such as food and energy, was recorded at 22.59%. Meanwhile, urban inflation reached 26.09%, with rural inflation standing at 22.15%.
The Statistician-General assured Nigerians that government policies remain in place to further curb inflationary pressures and improve purchasing power. Economic analysts suggest that the rebasing will provide better insights for policymakers, investors, and businesses to make informed decisions on market trends and fiscal strategies.
While the rebased CPI presents a more optimistic inflation outlook, many Nigerians remain cautious, hoping that future economic policies will translate into tangible benefits such as lower food prices and increased affordability of essential goods. The coming months will reveal whether inflationary pressures continue to ease or if additional interventions will be required to sustain economic stability.
