Nigeria’s inflation rate fell to 23.18% in February 2025, down from 24.48% in January. Year-on-year, it decreased by 8.52% from the previous February. The reduction was mainly influenced by price changes in food, transport, and housing. The NBS has also rebased the Consumer Price Index to reflect current economic conditions accurately.
In February 2025, Nigeria’s headline inflation rate decreased to 23.18 percent, as reported by the National Bureau of Statistics (NBS). This was a reduction of 1.30 percent from January 2025, where the rate was recorded at 24.48 percent. Compared to February 2024, this figure reflects an 8.52 percent decline from 31.70 percent in the previous year.
The report indicated a month-on-month inflation increase of 2.04 percent. This change was attributed to price hikes across various sectors, including food, non-alcoholic beverages, transport, and housing. Categories showing price increases also encompassed education, health, and household goods, among others, affecting the overall consumer price index (CPI).
In terms of food inflation, the rate in February 2025 was recorded at 23.51 percent, significantly lower than the 37.92 percent noted in February 2024. This year-on-year decline resulted from adjustments in the base year. Month-on-month food inflation showed a rate of 1.67 percent, reflecting diminished average prices for several food items.
Core inflation, which excludes volatile agricultural products and energy, stood at 23.01 percent on a year-on-year basis, down from 25.13 percent the previous year. The month-on-month core inflation rate was noted at 2.52 percent. Additionally, the report highlighted rates for farm produce and energy as 1.77 percent and -0.99 percent, respectively.
The urban inflation rate reflected a year-on-year rate of 25.15 percent, which is 8.51 percentage points lower than February 2024, while rural inflation was at 19.89 percent, a reduction of 10.09 percentage points over the same period. Month-on-month urban and rural inflation rates were 2.40 percent and 1.16 percent, respectively.
State-specific data indicated that Edo recorded the highest year-on-year inflation at 33.59 percent, followed by Enugu and Sokoto. Conversely, the lowest inflation increase was found in Katsina at 15.45 percent. In terms of monthly inflation, Sokoto reported the highest increase at 11.98 percent, while several states recorded negative inflation rates.
The rebalancing of the CPI was recently implemented, which, according to the Statistician-General of the Federation, Adeyemi Adeniran, was necessary to provide a current representation of Nigeria’s economic indicators. The exercise aimed to update consumption patterns and improve data collection methodologies.
In summary, Nigeria’s headline inflation rate has observed a notable decrease in February 2025 to 23.18 percent, reflecting a decline both year-on-year and month-on-month. Key sectors such as food and transport influenced these changes. The rebasing of the Consumer Price Index also underscores an important adjustment in understanding current economic conditions. Overall, there is a positive trend toward moderating inflation in the nation.
Original Source: businessday.ng
