Nigeria’s inflation rate rose to 23.1% in February 2025, mainly due to high transport costs and consumer spending. Food inflation hit 23.51% as well. Analysts express caution about reaching the targeted 15% inflation rate within 2025. Various measures by the CBN aim to stabilize the economy amid ongoing price shocks since President Tinubu’s term began.
Nigeria’s inflation reached 23.1% in February 2025, as reported by the National Bureau of Statistics (NBS), a rise attributed to increased transport costs from higher gasoline prices and consumer spending behavior. This figure marks a shift from the previous January’s rate of 24.48%, following revisions. Analysts anticipate discussions of an interest rate hike in the upcoming Monetary Policy Committee meeting later this year.
Food inflation specifically rose to 23.51% in February, driven by increased costs in food, transportation, and energy. Samuel Onyekanmi, a Norrenberger analyst, indicated a likely inflation increase due to seasonal buying trends associated with festivities and persistent high food prices.
Despite the NBS’s rebasing efforts, Onyekanmi expressed skepticism about reaching the targeted 15% inflation rate for 2025, while noting future stability could be possible in subsequent years. He highlighted 2025 as a potential test for economic stability amid ongoing price shocks since President Tinubu’s administration.
The Central Bank of Nigeria (CBN) has enacted various measures aimed at stabilizing the foreign exchange market, contributing to a strengthening naira. However, the economy is still adapting to the inflationary pressures observed since the new administration took charge, indicating that adjustments are ongoing in response to prevailing economic conditions.
In summary, Nigeria’s inflation has escalated to 23.1%, fueled by increased transport costs and consumer spending. Food inflation stands at 23.51%, indicating ongoing economic challenges despite regulatory efforts. Analysts remain cautious about future inflation targets, projecting that 2025 may serve as a critical test period for sustaining economic stability as the country navigates significant inflationary pressures.
Original Source: thecondia.com
