In February 2025, Nigeria’s inflation reached 23.1%, driven by rising transport and food costs. This increase could prompt discussions on another interest rate hike at the Monetary Policy Committee meeting. While analysts see inflation continuing to rise due to seasonal buying trends, achieving a targeted 15% inflation rate appears unlikely.
In February 2025, Nigeria’s headline inflation rose to 23.1%, primarily due to soaring transport costs driven by increased gasoline prices and heightened consumer expenditure, as reported by the National Bureau of Statistics (NBS). This new figure reflects an increase from January’s reported 24.48% after adjustments were made. The recent data also indicates that food inflation surged to 23.51%, highlighting rising costs for food, transportation, and energy.
Analyst Samuel Onyekanmi from Norrenberger stated, “I expect to see a slight increase in inflation, going by the frenzy buying typically associated with the festivities and noting that food inflation is still very much on the high, due to the seasonal effect.” He further acknowledged that despite the rebasing of figures, achieving a targeted inflation rate of 15% in 2025 appears unlikely, though stability could be possible in subsequent years if 2025 acts as a trial for economic stabilization.
Despite efforts by the Central Bank of Nigeria (CBN) to stabilize the foreign exchange market, which has led to a recent strengthening of the naira, the Nigerian economy is still adapting to price fluctuations experienced following President Tinubu’s assumption of office. The ongoing rise in inflation suggests that these economic adjustments remain in process.
The recent rise in Nigeria’s inflation rate to 23.1% underscores the challenges faced by the economy amid ongoing adjustments to price shocks. Analysts anticipate a slight increase in inflation due to seasonal factors, while the CBN’s interventions have yet to yield full stabilization. Achieving a 15% inflation target in 2025 seems improbable; however, future stability remains a potential goal as conditions evolve.
Original Source: thecondia.com
