Nigeria’s inflation rate dropped to 23.18% year-on-year in February, as reported by the statistics agency. This marks a significant decrease from December’s 34.80% and follows a recent rebasing of the Consumer Price Index. The central bank maintained its key interest rate in response to the easing inflation and currency stability.
According to Nigeria’s statistics agency, the headline inflation rate decreased to 23.18% year-on-year in February, reflecting a steady decline compared to January’s rate. This significant shift follows the National Bureau of Statistics’ recent rebasing of the Consumer Price Index, which aimed to align with contemporary consumption patterns, updating the base year from 2009 to 2024.
Notably, inflation has dropped considerably from 34.80% in December and 24.48% in January, marking the most significant reduction in over a decade. This decline comes following President Bola Tinubu’s initiatives to eliminate expensive subsidies and devalue the naira since taking office in 2023, contributing to the inflationary spike seen last year.
In its initial rate-setting meeting of the year, the central bank decided to maintain its key interest rate, following six consecutive hikes in 2022. The bank justified this move by emphasizing the importance of foreign exchange stability and the ongoing decreases in inflation rates, suggesting a cautious approach moving forward.
In summary, Nigeria’s inflation rate has experienced a significant decline to 23.18% in February following a strategic rebasing of the Consumer Price Index. This marks a notable shift from previous high inflation rates, largely influenced by government fiscal policies. Furthermore, the central bank’s decision to keep interest rates stable highlights an optimistic outlook on inflation and currency stability, paving the way for economic stabilization in the country.
Original Source: money.usnews.com
