Nigeria’s inflation rate fell to 23.18% in February, down from 24.48% in January and 34.80% in December. This decline follows significant economic reforms and a rebasing of the Consumer Price Index. The central bank has opted to maintain interest rates after prior increases due to improvements in foreign exchange stability.
In February, Nigeria’s headline inflation rate decreased to 23.18% year-on-year, as reported by the statistics agency. This decline marks a significant shift following the rebasing of the Consumer Price Index, which now reflects consumption changes for 2024 rather than 2009. Previously, inflation was at 24.48% in January, down from a staggering 34.80% in December.
The sharp drop in inflation represents the first notable decrease in over ten years, coinciding with actions taken by President Bola Tinubu to eliminate expensive subsidies and devalue the naira upon his assumption of office in 2023. Throughout the preceding year, inflation reached alarming 28-year peaks.
At its initial monetary policy meeting of the year, the Nigerian central bank decided to maintain its key interest rate following six increases in the prior year. The bank attributed its decision to the stabilization of foreign exchange rates coupled with the recent decrease in inflation rates.
In summary, Nigeria’s inflation rate has shown a notable decline from its previous highs, reaching 23.18% in February, following significant economic reforms initiated by President Bola Tinubu. This change comes after a decade-long pattern of rising inflation, now supported by a stable central bank interest rate. The rebasing of the Consumer Price Index has played a crucial role in this adjustment amidst ongoing market changes.
Original Source: money.usnews.com
