Nigeria’s Inflation Rate Drops to 24.48% In January 2025

By Tgnews

The National Bureau of Statistics (NBS) has officially released the report on the rebasing of the Consumer Price Index (CPI), revealing that Nigeria’s inflation rate has decreased significantly from 34.80% in December 2024 to 24.48% in January 2025.

According to the report, the adjusted food inflation rate for January was 26.08% on a year-over-year basis, marking a decrease in the food index compared to the 39.84% year-over-year figure recorded in the previous month. The adjusted core index, which excludes the costs of fluctuating agricultural products and energy, registered a year-on-year increase of 22.59% in January, compared to 29.28% in the previous month.

The urban inflation rate has also decreased, standing at 26.09% year-on-year, down from 37.29% in December

The urban inflation rate has also decreased, standing at 26.09% year-on-year, down from 37.29% in December. In contrast, rural inflation was recorded at 22.15% year-on-year during the review period, a significant decline from the 32.47% recorded in December using the previous methodology.

The NBS attributed the decline in inflation rate to the rebasing of the CPI, which incorporated significant enhancements to its methodologies, widened the scope of product categories and food options, and adopted a more recent base year. The report stated that the new methodology provides a more accurate representation of the country’s inflation rate, taking into account changes in consumer spending patterns.

The report is expected to provide further insights into the inflation rate and its implications for the economy

The decline in inflation rate is a welcome development, and it is expected to have a positive impact on the economy, as it will lead to increased purchasing power for consumers and reduced costs for businesses. The report is expected to provide further insights into the inflation rate and its implications for the economy, and will be closely watched by policymakers, businesses, and investors.