By Kazeem Ugbodaga
Nigeria’s inflation rate fell sharply to 24.48% in January 2025 from 34.80% recorded in December 2024, following the release of the rebased Consumer Price Index (CPI) by the National Bureau of Statistics (NBS).
The new CPI, with a base year of 2025 and weight reference period of 2024, offers an updated measure of price movements across the economy.
According to the NBS report, food prices remained high at 26.08%, while core inflation, which excludes food and energy, stood at 22.59%. Urban inflation was recorded at 26.09%, surpassing rural inflation at 22.15%.
As part of the rebasing, the NBS introduced new indices to track sector-specific inflation. The special indices for January 2025, compared to the base year (2024 = 100), are as follows: Farm Produce Inflation: 10.50%; All Items Less Farm Produce: 10.70%; Energy Index: 8.90%; Services Index: 10.41% and Imported Food Index: 11.47%.
The imported food index, at 11.47%, suggests external factors such as currency fluctuations and supply chain disruptions are affecting food prices. The energy index, at 8.90%, highlights ongoing cost pressures in fuel and electricity.
The decline in inflation signals potential economic stability, possibly driven by policy interventions, improved supply chains, and currency adjustments. However, rising food and energy costs remain concerns for consumers and businesses.
Analysts suggest sustaining the downward trend will require targeted government policies in food production, infrastructure development, and exchange rate management.
