Nigeria’s inflation eased to 23.18% year-on-year in February, down from 24.48% in January. This marks a significant reduction from the previous year’s high of 34.80% in December, attributed to reforms by President Bola Tinubu. The central bank decided to keep interest rates unchanged amid falling inflation and stable foreign exchange rates.
Nigeria’s inflation rate decreased to 23.18% year-on-year in February, according to data from the National Bureau of Statistics (NBS). This reduction follows a significant drop from 34.80% in December to 24.48% in January, marking the first major decline in over a decade. This adjustment comes after the NBS revised the Consumer Price Index in line with updated consumption patterns, establishing 2024 as the new base year compared to the previous base from 2009.
The inflation spike in 2022, which resulted in multiple 28-year highs, was significantly influenced by President Bola Tinubu’s policies aimed at eliminating expensive subsidies and devaluing the naira after taking office in 2023. These measures were part of broader economic reforms targeting inflation control and fiscal stabilization.
In its initial rate-setting meeting of the year, the central bank opted to maintain its key interest rate after implementing six rate hikes in 2022. They attributed this decision to the observed stability in foreign exchange rates alongside the declining inflation figures.
February’s inflation data indicates a positive trend for Nigeria’s economy, reflecting the effects of recent fiscal policies aimed at stabilization. The significant decrease from December through February showcases the impact of the NBS’s rebasing and strategic economic initiatives by President Tinubu’s administration. Maintaining interest rates and effectively managing inflation remains a critical focus for the central bank moving forward.
Original Source: money.usnews.com
