Nigeria’s inflation rate decreased to 23.2% in February, following a methodology rebasing by the NBS. The CPI was adjusted from 34.8% to 24.48%. The NBS updated both the base year to 2024 and expanded the inflation basket to account for modern household spending.
In February, Nigeria’s inflation rate decreased to 23.2%, marking the second consecutive month of decline following a methodology change by the National Bureau of Statistics (NBS). This reduction in the annual Consumer Price Index (CPI) reflects a drop from 24.5% in January, according to NBS data shared via email on Monday.
The NBS recently released rebased CPI data, adjusting the inflation rate from 34.8% to 24.48%. The primary rationale for this rebasing was to align the methodology with contemporary household spending habits and to update the composition of the inflation basket.
To facilitate this, the NBS revised the price reference period from 2009 to 2024 and increased the inflation basket’s items from 740 to 960. This decision to adopt 2024 as the new base year is critical, considering it represents a time marked by significant inflationary pressures driven by various factors.
Nigeria’s inflation has shown signs of slowing for two consecutive months, now at 23.2% as of February. The NBS’s recent rebasing of the CPI has played a crucial role in better reflecting current economic circumstances and consumer spending, while increasing the inflation basket’s breadth is intended to enhance accuracy in future inflation calculations.
Original Source: businessday.ng
