In February 2025, Nigeria’s inflation decreased to 23.18%, influenced by lower fuel prices and a stable naira. Diesel prices dropped by 33% due to increased production from the Dangote Refinery, while food inflation slightly declined. Analysts warn of possible inflation surges by April, with interest rates held steady at 27.5%.
In February 2025, Nigeria experienced a notable decrease in inflation, with the rate falling to 23.18%, down from January’s 24.48%, as reported by the National Bureau of Statistics. This decline is attributed to a recent rebase of the Consumer Price Index (CPI), lower fuel prices, and a relatively stable naira, signaling a temporary easing of economic pressures.
Significantly, the enhanced output from the Dangote Refinery contributed to a 33% decrease in diesel prices, while petrol prices remained stable. Additionally, food inflation also saw a slight reduction, decreasing to 23.51% from 24.08% in January.
Despite the temporary relief experienced, analysts caution that inflation may rise again by April due to ongoing global economic challenges. Meanwhile, the Monetary Policy Committee has opted to maintain the interest rate at 27.5% after a thorough assessment of the current macroeconomic environment.
In summary, Nigeria’s inflation rate showed a decline in February 2025, primarily due to lower fuel costs and a stable naira. However, potential future increases in inflation are anticipated, prompting close monitoring of the economic landscape. The decision to maintain interest rates reflects the Monetary Policy Committee’s evaluation of broader economic conditions.
Original Source: www.africa.com
