Nigeria’s headline inflation rate has dropped significantly to 24.48% year-on-year in January 2025, marking a sharp decline from the 34.80% recorded in December 2024, according to the National Bureau of Statistics (NBS).
The Statistician-General of the Federation Adeyemi Adeniran, confirmed the figures during a press briefing in Abuja on Tuesday. He explained that the Consumer Price Index (CPI), which measures changes in the prices of goods and services, had decreased to 24.48% year-on-year for the month of January.
The report revealed that urban inflation stood at 26.09%, while rural inflation was recorded at 22.15%.
The NBS noted that this decline in inflation was due to the recent rebasing of the CPI. CPI rebasing involves updating the reference year and adjusting the basket of goods and services used to measure inflation, to better reflect current consumer spending patterns and provide a more accurate picture of inflation in the economy.
Food inflation, which is a key contributor to the overall inflation rate, decreased to 26.08% year-on-year in January, down from 39.84% in December 2024. The core index, which excludes volatile agricultural prices and energy costs, stood at 22.59% year-on-year in January, signaling a reduction in inflationary pressures.
Adeniran emphasized that the rebased CPI now more accurately reflects the country’s current inflationary pressures and consumption trends. Despite this progress, the country’s economy is still grappling with inflationary challenges, though the recent decline offers a glimmer of hope for economic stability in the months ahead.
