Nigeria’s inflation rate decreased to 23.18% in February 2025, down from 24.48% in January. Food inflation fell to 23.51%, 14.41% lower than February 2024. The CPI rebasing influenced these changes. Urban inflation was at 25.15%, while rural inflation reached 19.89%. Regional variations were noted in inflation rates and contributions from various sectors.
The National Bureau of Statistics (NBS) has reported a decrease in Nigeria’s Consumer Price Index (CPI), with inflation dropping to 23.18% in February, down from 24.48% in January 2025. This figure represents a significant decrease of 8.52% compared to the 31.70% inflation recorded in February 2024. Month-on-month inflation for February stood at 2.04%.
Food inflation has also decreased, reaching 23.51% in February, 14.41% lower than the previous year’s figure of 37.92%. The notable decline is attributed to the rebasing of the CPI from 2009 to 2024. Meanwhile, the month-on-month food index increased by 1.67%, with an average annual rate for the past twelve months at 34.74%, compared to 30.07% the previous year.
Core inflation, which excludes volatile agricultural and energy prices, decreased to 23.01%, a drop from the previous year’s 25.13%. The month-on-month core inflation index registered at 2.52%, contributing to a twelve-month average inflation rate of 25.33%, higher than 21.72% in February 2024.
The inflation contributors included food and non-alcoholic beverages (+9.28%), restaurants and accommodation services (+2.99%), and transport (+2.47%). Issues related to housing and utilities accounted for 1.95%, while education and health services also played roles in inflationary pressures. Additionally, sectors like clothing, communication, and personal care contributed minimally.
Urban inflation dropped to 25.15% compared to 33.66% in February 2024, with a month-on-month index of 2.40%. Rural inflation similarly decreased to 19.89% year-on-year from 29.99%, with a month-on-month index of 1.16%.
Regionally, Edo (33.59%), Enugu (30.72%), and Sokoto (30.19%) had the highest year-on-year inflation, while Kaduna (15.45%), Akwa Ibom (15.53%), and Plateau (15.74%) had the lowest. Month-on-month, Sokoto (11.98%), Kogi (11.38%), and Edo (8.87%) showed the highest inflation rises.
In terms of food prices, Sokoto recorded the highest food index increase at 38.34%, followed by Edo (35.08%) and Nasarawa (33.53%). In contrast, Adamawa (12.18%), Ondo (13.66%), and Oyo (15.55%) saw the smallest year-on-year increases. Month-on-month, food inflation peaked in Sokoto (18.83%) but saw declines in Ondo (-9.81%) and Kaduna (-8.91%).
In summary, Nigeria’s inflation rate has decreased significantly, reaching 23.18% in February 2025, marking a notable decline from January. Food inflation is also down, but the recent CPI rebasing accounts for some variations. Urban and rural inflation rates reveal diverse regional pressures, with food prices fluctuating based on local conditions. These insights reflect evolving economic conditions and suggest a complex interplay of contributing factors to inflation in Nigeria.
Original Source: www.arise.tv
