Nigeria recorded an inflation rate of 23.2 percent in February, marking a decline for the second consecutive month as reported by the National Bureau of Statistics (NBS). This reduction follows the rebasing of the Consumer Price Index (CPI), which altered the methodology and expanded the inflation basket. The NBS changed the reference period to 2024 and adjusted the basket from 740 to 960 items, aiming to better reflect current household spending.
In February, Nigeria experienced a decrease in inflation, with the Consumer Price Index (CPI) registering at 23.2 percent. This marks the second consecutive month of decline, following January’s rate of 24.5 percent, as reported by the National Bureau of Statistics (NBS) in a recent email announcement. This adjustment comes in light of a rebased methodology utilized by the NBS to better represent current household spending habits.
The NBS recently published the updated CPI data, revealing a significant drop from the previous rate of 34.8 percent to 24.48 percent. The rebasing exercise undertaken by the NBS aimed to enhance the methodology employed in measuring inflation, thus revising the structure of Nigeria’s inflation basket to reflect contemporary spending patterns.
As part of this comprehensive update, the NBS has shifted the base year for price reference from 2009 to 2024. Additionally, the inflation basket has expanded to include 960 items, up from the previous 740. This change was deemed essential as it coincides with a period marked by considerable price pressures stemming from multiple influencing factors.
Nigeria’s inflation figures are on a downward trajectory, with February’s rate at 23.2 percent down from January’s 24.5 percent. The rebasing of the Consumer Price Index by the National Bureau of Statistics is pivotal in representing current economic conditions and consumer behavior. The strategic update to the CPI, including the expanded inflation basket and new base year, underscores a commitment to more accurately reflecting consumer price dynamics.
Original Source: businessday.ng
