Nigeria’s inflation rate in February 2025 dropped to 23.18%, down from 24.48% in January. The report highlights decreases in year-on-year inflation rates, with food inflation at 23.51%, influenced by changes in the base year. Urban and rural inflation rates also declined significantly. The CPI has been rebased to enhance the accuracy of economic indicators.
The National Bureau of Statistics (NBS) reports that Nigeria’s headline inflation rate fell to 23.18% in February 2025 from 24.48% in January 2025. This marks a decrease of 1.30% and is 8.52% lower than February 2024’s rate of 31.70%. The decline is notable, despite variations in the base year used for comparison.
On a monthly basis, February 2025 experienced a 2.04% increase in the headline index. The overall inflation rate rise is attributed to increased prices across various sectors, including food, non-alcoholic beverages, transportation, housing, and education services, among others.
The average Consumer Price Index (CPI) for the twelve months ending February 2025 increased by 30.09%, which is 3.91% higher than the previous year. Food inflation specifically reduced to 23.51% year-on-year, down from 37.92% the previous year, due to changes in the base year.
Despite a monthly food inflation rate of 1.67% in February 2025, food prices for items such as yam, potatoes, and maize have significantly dropped, leading to this positive trend. Core inflation, which excludes volatile food and energy prices, was at 23.01%, reflecting a 2.12% decrease compared to February 2024.
The month-on-month figures for February 2025 showed farm produce inflation at 1.77%, with energy prices slightly declining to -0.99%. Services reported a 3.38% rate, while goods recorded a 1.29% increase, and imported food inflation was at 1.71%.
Urban inflation in February 2025 was 25.15%, representing a decrease of 8.51% from the previous year, while rural inflation was at 19.89%, down 10.09%. Month-on-month, urban inflation was 2.40%, and rural inflation was 1.16%.
State-wise, the greatest year-on-year inflation rate was recorded in Edo at 33.59%, with Sokoto showing the highest month-on-month inflation at 11.98%. Conversely, Katsina had the slowest year-on-year inflation rate at 15.45%. Food inflation was highest in Sokoto at 38.34% year-on-year.
The CPI was recently rebased to reflect Nigeria’s current economic structure more accurately, with the base year updated from 2009 to 2024. This re-evaluation includes updated consumption baskets and improved data-gathering methods to ensure the relevance of Nigeria’s economic indicators.
In summary, Nigeria’s inflation rate has shown a decline, with February 2025 reflecting a decrease in both headline and food inflation rates compared to previous months and the same period last year. The ongoing adjustments in the CPI and economic structure are aimed at better accuracy in economic indicators. Although inflation remains a concern, certain sectors are experiencing price stabilization, contributing to the overall easing of the inflation rate.
Original Source: businessday.ng
