Nigeria’s inflation rate decreased to 23.18% in February 2025, down from 24.48% in January 2025, marking an 8.52% reduction year-on-year. Food inflation was recorded at 23.51%, driven by fluctuations in staple prices. The NBS rebased the CPI to include new economic indicators and improve data accuracy, reflecting adjustments in the changing economy.
According to the National Bureau of Statistics (NBS), Nigeria’s inflation rate has decreased to 23.18 percent in February 2025, down from 24.48 percent in January 2025. The Consumer Price Index (CPI) and Inflation Report released in Abuja highlighted this decline as a significant year-on-year reduction of 8.52 percent from February 2024, which recorded a rate of 31.70 percent.
The month-on-month inflation in February 2025 was reported at 2.04 percent. The report attributed the inflationary pressures to increases in various categories, including food and non-alcoholic beverages, transport, housing, and education services, among others. These trends reflect broader economic influences on pricing across multiple sectors.
Food inflation specifically observed a year-on-year decrease to 23.51 percent, a substantial drop from 37.92 percent in the previous year. This change is observed despite an increase in month-on-month food inflation, measured at 1.67 percent, primarily due to rising prices of fundamental food items such as yam, potatoes, and maize flour.
Core inflation, which excludes food and energy prices, was recorded at 23.01 percent year-on-year, a 2.12 percent decline compared to the previous year’s 25.13 percent. Month-on-month data indicated a core inflation rate of 2.52 percent, underscoring slight fluctuations in the prices of non-perishable goods.
Urban inflation in February 2025 reached 25.15 percent, while rural inflation stood at 19.89 percent, with both metrics lower than the previous year’s figures. These observations indicate significant regional economic variations, with the highest urban inflation reported in Edo State at 33.59 percent and the lowest in Katsina at 15.45 percent.
State-by-state analysis revealed notable disparities in inflation rates across the country, with Sokoto experiencing the highest cumulative inflation rates on both year-on-year and month-on-month comparisons for food inflation. Conversely, states like Adamawa and Ondo demonstrated slower inflation increases in both categories.
The NBS recently rebased the CPI to reflect the changing economic landscape, adopting 2024 as the new base year. This endeavor aims to enhance the accuracy of Nigeria’s economic indicators, incorporating emerging sectors and improving data collection methodologies. This adjustment is crucial for understanding the current economic climate and guiding policy decisions effectively.
In summary, Nigeria’s inflation rate has notably decreased to 23.18 percent in February 2025, reflecting significant shifts in the economic environment compared to previous months and years. Key contributors to inflationary trends include various consumer goods and services, with food prices showing both year-on-year and month-on-month fluctuations. The recent CPI rebasing underscores the need to accurately represent the evolving landscape of Nigeria’s economy.
Original Source: businessday.ng
