In February 2025, Nigeria’s inflation decreased to 23.18% from 24.48% in January, attributed to a stable naira and lower fuel prices. Diesel prices dropped by 33% due to higher production from the Dangote Refinery, while petrol prices remained stable. Food inflation also eased slightly to 23.51% from 24.08%. Analysts foresee a possible surge in inflation by April due to global pressures, as interest rates remain steady at 27.5%.
In February 2025, Nigeria experienced its first decline in inflation, with the rate reducing to 23.18% from January’s 24.48%, as reported by the National Bureau of Statistics. This reduction is attributed to a rebase of the Consumer Price Index (CPI), alongside a stabilized naira and lower fuel costs. The increased output from the Dangote Refinery facilitated a 33% decrease in diesel prices, while petrol prices remained consistent.
Food inflation demonstrated a slight decline as well, dropping to 23.51% from January’s 24.08%. Although this represents a minor relief for consumers, analysts caution that inflationary pressures may resurface by April, influenced by global economic conditions. Furthermore, the Monetary Policy Committee has decided to maintain interest rates at 27.5% in light of recent macroeconomic evaluations.
The recent decrease in Nigeria’s inflation rate signals temporary relief due to stabilizing factors such as lower fuel prices and a steady naira. However, potential future increases in inflation are anticipated due to broader economic pressures, underscoring the need for ongoing vigilance. The stabilization of interest rates by the Monetary Policy Committee further reflects the current economic landscape of Nigeria.
Original Source: iafrica.com
