Nigeria’s inflation rate fell to 23.18% in February 2025 from 24.48% in January. Food inflation also showed improvement, decreasing to 23.51% year-on-year, although pressures remain high, exacerbated by policy changes and rising costs. The government has taken steps to mitigate these challenges but faces ongoing inflation in various sectors.
Nigeria’s inflation rate decreased to 23.18% in February 2025, down from 24.48% in January 2025, as reported by the National Bureau of Statistics (NBS). This indicates a decline of 1.30% month-to-month and shows an 8.52% decrease from the 31.70% inflation rate recorded in February 2024. The year-on-year measure highlights improvement in inflation rates when compared to the previous year.
On a month-to-month basis, February 2025’s inflation rate stood at 2.04%. Factors contributing to ongoing inflation include a significant rise in food prices due to the removal of petrol subsidies and the implementation of a floating exchange rate by President Bola Tinubu. This has led to an increased cost of staple foods, pushing many Nigerians into poverty and exacerbating food insecurity.
In July 2023, President Tinubu declared a state of emergency regarding food insecurity in response to rising food costs and announced measures such as suspending duties on key food imports. Despite these initiatives, food inflation pressures persisted. In January 2025, the inflation rate fell to 24.48%, a reduction from the previous month’s 34.80% following a rebase.
The NBS detailed contributions to the rise in the headline index in its latest report: food & non-alcoholic beverages (9.28%), restaurants and accommodation services (2.99%), and transport (2.47%) among others. The twelve-month average CPI change ending in February 2025 was 30.09%, reflecting a 3.91% increase from 26.18% in the same month of 2024.
Regarding food inflation, the NBS reported a year-on-year rate of 23.51% in February 2025, a notable decrease from 37.92% in February 2024. However, on a month-to-month basis, food inflation rose by 1.67%. The report noted certain food items, such as yam tubers and potatoes, saw price declines compared to January 2025. The average annual food inflation rate for the twelve months ending February 2025 was 34.74%, an increase from 30.07% in February 2024.
In summary, Nigeria’s inflation has shown signs of easing, with the headline inflation rate and food inflation both decreasing compared to January 2025 and February 2024. Although government actions to address food insecurity include suspending duties on essential imports, inflationary pressures persist, particularly in food pricing. Continuous monitoring of these dynamics will be essential to address the underlying issues affecting the economy.
Original Source: www.premiumtimesng.com
