Nigeria’s headline inflation rate has dropped to 24.48% year-on-year in January 2025, a significant decline from the 34.80% recorded in December 2024, according to the National Bureau of Statistics (NBS).
The Statistician-General of the Federation, Adeyemi Adeniran, announced this during a press briefing in Abuja on Tuesday, attributing the decline to the rebasing of the Consumer Price Index (CPI), which now aligns with international standards.
Understanding the CPI Rebasing and Its Impact
The Consumer Price Index (CPI) measures the rate of change in prices of goods and services over time. The rebasing means updating the reference year and adjusting the basket of goods and services used to calculate inflation, ensuring it accurately reflects current consumer spending patterns.
Adeniran explained that under the new rebased CPI, the breakdown of inflation is as follows:
- Urban inflation: 26.09%
- Rural inflation: 22.15%
- Food inflation: 26.08% year-on-year, a decline from 39.84% in December 2024
- Core inflation (excluding volatile food and energy prices): 22.59% year-on-year
The NBS emphasized that these figures better reflect the inflationary pressures and consumption patterns in Nigeria.
CBN’s Efforts to Curb Inflation
The Central Bank of Nigeria (CBN) has been implementing monetary policies aimed at controlling inflation and stabilizing the economy. CBN Governor Yemi Cardoso, speaking earlier this month at the Monetary Policy Forum 2025, reiterated the bank’s commitment to price stability.
He stated:
“Managing disinflation amidst persistent shocks requires not only robust policies but also coordination between fiscal and monetary authorities to anchor expectations and maintain investor confidence.
“Our focus must remain on price stability, the planned transition to an inflation-targeting framework, and strategies to restore purchasing power and ease economic hardship.”
The drop in inflation is a positive signal for Nigeria’s economy, suggesting that recent monetary and fiscal policies are starting to take effect. However, challenges such as exchange rate fluctuations, global economic conditions, and local production constraints remain critical factors in the country’s economic trajectory.
As the CBN continues policy interventions, Nigerians will be watching to see if the disinflation trend continues in the coming months.
Stay tuned to 9am News Nigeria for more Breaking News, Business News, Sports updates And Entertainment Gists.
