The National Bureau of Statistics says Nigeria’s inflation rate dropped to 24.4% in January 2025 following a rebasing of the Consumer Price Index (CPI). CPI rebasing means updating the reference year and modifying the basket of goods and services used in inflation measurement. This adjustment ensures that inflation figures better reflect current economic conditions and consumer spending habits.
According to the CPI figures for the period under review, the rebased food inflation stood at 26.08 per cent year-on-year in January, representing a decline in the food index when compared with 39.84 per cent year-on-year recorded in the preceding month.
Also, the rebased core index which excludes the prices of volatile agricultural produce and energy stood at 22.59 per cent year on year in January.
According to the NBS, the rebased CPI reflects the current inflationary pressure and consumption pattern of people living in the country. It noted that the rebasing of the CPI is a critical step in ensuring that inflation data remains relevant and reflective of economic realities. The previous base year did not adequately capture the changes in consumer behaviour, emerging market trends, and shifts in spending patterns over time.
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The new rate represents a major decline from the 34.80% recorded in December 2024 as the general prices of goods and services in the country fell rapidly.
The drop in inflation could signal improved economic stability, but it does not necessarily translate into lower prices in the immediate term. The business community will be closely watching how the government navigates inflation control measures while ensuring sustained economic growth.
