Nigeria’s inflation rate fell to 23.18% in February from 24.48% in January, after the National Bureau of Statistics rebased the Consumer Price Index. Following President Tinubu’s measures last year, inflation saw a significant drop from December’s 34.80%. The central bank has decided to keep interest rates unchanged to support economic stability.
In February, Nigeria’s headline inflation rate declined to 23.18% year-on-year, according to the nation’s statistics agency. This represents a notable decrease from January’s rate of 24.48%, following a significant reduction from December’s high of 34.80%. This decline marks a pivotal moment as it follows the National Bureau of Statistics’ recent rebasing of the Consumer Price Index, reflecting shifts in consumption patterns with 2024 established as the new base year.
The inflation rate had reached a concerning 28-year high last year, primarily due to President Bola Tinubu’s economic reforms, which included the elimination of expensive subsidies and the devaluation of the naira currency after he assumed presidency in 2023. This sweeping economic approach has substantially influenced inflationary pressures in the country.
Furthermore, during the first rate-setting meeting of the year, Nigeria’s central bank opted to maintain the key interest rate, following six increased rates in the previous year. The bank attributed this decision to ongoing efforts in stabilizing foreign exchange rates and managing inflation levels, highlighting a cautious but optimistic economic landscape.
In conclusion, Nigeria’s inflation rate exhibited a significant decrease to 23.18% in February, following robust economic measures and a revised Consumer Price Index. The government’s actions in recent times have played a pivotal role in stabilizing the economy as the central bank holds steady on interest rates while navigating foreign exchange dynamics. This shift signals potential positive trends in Nigeria’s economic recovery and inflation management strategies.
Original Source: money.usnews.com
