Nigeria’s inflation rate declined to 23.2 percent in February, the second consecutive drop after the NBS rebased the Consumer Price Index. The rebasing was intended to align with current household spending and update the inflation basket, changing the base year from 2009 to 2024 and increasing the basket items from 740 to 960.
In February, Nigeria experienced a decline in inflation to 23.2 percent, marking the second consecutive month of reduction following methodological changes by the National Bureau of Statistics (NBS). According to NBS data released via email, consumer prices decreased from 24.5 percent in January to 23.2 percent in February.
This shift follows the release of the rebased Consumer Price Index (CPI), which corrected the previous rate of 34.8 percent to a new figure of 24.48 percent. The rebasing exercise aimed to update methodologies to better reflect current household spending patterns and to revise the inflation basket’s composition.
The NBS adjusted the price reference period (base year) from 2009 to 2024 and expanded the inflation basket from 740 to 960 items. This change signifies an adjustment to a year characterized by notable price pressures resulting from various influencing factors, ensuring a more accurate representation of inflation in the country.
In summary, Nigeria’s inflation rate decreased to 23.2 percent in February, influenced by recent methodological updates from the NBS. The rebased CPI reflects a more comprehensive view of consumer prices and household spending patterns by changing the base year and expanding the inflation basket. This methodological realignment may facilitate more accurate economic assessments moving forward.
Original Source: businessday.ng
