Nigeria’s Inflation Drops to 24.48% in January – NBS
Nigeria’s headline inflation has sharply declined to 24.48% in January, a significant drop from 34.80% recorded in December 2024, according to the National Bureau of Statistics (NBS).
The Statistician-General of the Federation, Adeyemi Adeniran, announced this on Tuesday during a press briefing in Abuja. He explained that:
- Urban inflation stood at 26.09%
- Rural inflation was 22.15%
He attributed the decline to the rebasing of the Consumer Price Index (CPI), aligning it with international standards to better reflect current consumer spending patterns.
Understanding the CPI Rebasing
CPI rebasing involves updating the reference year used to track price levels by adjusting the basket of goods and services measured. This ensures inflation data accurately reflects the economy’s current state.
Breakdown of Rebased Inflation Figures
- Food inflation: 26.08% year-on-year in January, down from 39.84% in December.
- Core inflation (excluding volatile agricultural produce and energy): 22.59% year-on-year.
The NBS emphasized that the rebased CPI now provides a more accurate picture of inflationary trends and consumption patterns in Nigeria.
CBN’s Stance on Inflation Control
Earlier this month, Central Bank of Nigeria (CBN) Governor Yemi Cardoso reaffirmed the apex bank’s commitment to tackling inflation and stabilizing the economy.
"Managing disinflation amidst persistent shocks requires strong policies and coordination between fiscal and monetary authorities to anchor expectations and maintain investor confidence," Cardoso stated during the Monetary Policy Forum 2025 in Abuja.
He reiterated the CBN’s focus on:
- Price stability
- Transitioning to an inflation-targeting framework
- Restoring purchasing power and easing economic hardship
Comments