Nigeria’s inflation rate fell to 23.18% in February 2025, down from 24.48% in January. Food inflation decreased to 23.51%, the lowest since September 2022, primarily due to a base year adjustment by the National Bureau of Statistics. The monthly CPI rose by 2%.
In February 2025, Nigeria’s annual inflation rate experienced a decline, settling at 23.18%, a significant drop from January’s rate of 24.48%. This marks the lowest inflation level observed since June 2023. Concurrently, food inflation also saw a reduction, reaching 23.51%, the lowest rate since September 2022.
The reduction in the inflation rate is largely linked to a technical adjustment in the base year. The National Bureau of Statistics updated the Consumer Price Index base year from 2009 to 2024 in January 2025. Despite this decrease, the Consumer Price Index (CPI) recorded a 2% increase on a month-on-month basis, indicating ongoing inflationary pressures in certain sectors of the economy.
Nigeria’s inflation rate continues to show signs of easing, with a notable drop in both annual and food inflation rates. The adjustment in the base year for the Consumer Price Index contributes significantly to this downward trend, even as month-on-month CPI figures indicate an increase. Policymakers will need to monitor these changes closely to manage economic stability moving forward.
Original Source: www.tradingview.com
