Nigeria’s inflation rate has dropped to 23.18% in February from 24.48% the prior month, as reported by the National Bureau of Statistics. Year-on-year, food inflation decreased significantly by 14.41%. Core inflation also declined to 23.01%. Urban areas recorded higher inflation compared to rural regions. Overall, positive trends were noted with various sectors influencing the inflation landscape.
The Consumer Price Index (CPI) in Nigeria reported a decline in inflation to 23.18 percent in February, down from 24.48 percent in January, according to the National Bureau of Statistics (NBS). This year-on-year comparison shows a significant reduction of 8.52 percent from the 31.70 percent noted in February 2024. Month-on-month analysis further revealed that inflation reached 2.04 percent in February.
Additionally, the food inflation rate dropped to 23.51 percent in February, marking a decrease of 14.41 percent compared to the previous year, where it reached 37.92 percent. This substantial reduction is attributed to the rebasing of the CPI from 2009 to a new base year of 2024. Month-on-month food inflation remained at 1.67 percent, and the annual average was recorded at 34.74 percent, reflecting an increase from 30.07 percent in February of the previous year.
Core inflation, which excludes volatile food and energy prices, also exhibited a downward trend, settling at 23.01 percent in February — a decrease from 25.13 percent a year prior. The month-on-month core index recorded a rate of 2.52 percent, while the average 12-month inflation stood at 25.33 percent, higher than 21.72 percent in February 2024.
Various sectors contributed to the inflationary landscape, with food, non-alcoholic beverages, restaurants, accommodations, and transportation accounting for 9.28 percent, 2.99 percent, and 2.47 percent respectively. Other notable contributions came from housing, water, electricity, gas, and fuels which made up 1.95 percent; followed by education services (1.44 percent) and health (1.40 percent).
In terms of geographic disparities, urban inflation fell to 25.15 percent year-on-year in February, compared to 33.66 percent in February 2024, while rural inflation declined to 19.89 percent. Month-on-month, urban inflation was pegged at 2.40 percent versus a rural index of 1.16 percent.
State-level data indicated that Edo, Enugu, and Sokoto experienced the highest headline inflation rates at 33.59 percent, 30.72 percent, and 30.19 percent respectively. Conversely, Kaduna, Akwa Ibom, and Plateau had the lowest rates of 15.45 percent, 15.53 percent, and 15.74 percent. Month-on-month, Sokoto, Kogi, and Edo also saw the highest inflation rates, while areas like Kaduna and Ondo experienced declines in their inflation rates.
In summary, the latest data from the NBS indicates that Nigeria’s inflation has dropped significantly, particularly in food inflation and core inflation. With contributions from various sectors to the overall inflation, urban and rural areas also show contrasting trends. It is essential to monitor these trends closely, especially against the backdrop of the ongoing rebasing of the CPI, which is affecting year-on-year comparisons.
Original Source: www.arise.tv
