Nigeria’s inflation has decreased to 23.18% in February 2025 from 24.48% in January, aided by a stable naira and lower fuel prices. Food inflation also saw a slight decline. However, analysts warn of possible inflation increases by April due to global pressures, while the Monetary Policy Committee has kept interest rates steady at 27.5%.
In February 2025, Nigeria experienced its first decrease in inflation, which fell to 23.18% from the previous rate of 24.48%, as reported by the National Bureau of Statistics. This reduction can be attributed to a rebase of the Consumer Price Index (CPI), lower fuel prices, and a stable naira. The Dangote Refinery’s increased production significantly reduced diesel prices by 33%, while petrol prices remained relatively unchanged.
Additionally, food inflation witnessed a modest decline, moving to 23.51% from 24.08% in January. Although this presents a momentary reprieve, experts caution that inflation could rise again by April due to global economic challenges. In a related development, the Monetary Policy Committee decided to maintain interest rates at 27.5% following a review of current macroeconomic conditions.
In summary, Nigeria’s inflation is experiencing a slight decline due to stable currency and lower fuel prices, providing temporary relief to consumers. The decrease in food inflation is notable, yet analysts anticipate potential inflationary pressures to re-emerge in the coming months. The decision to maintain the interest rate reflects a cautious approach to current economic trends.
Original Source: www.africa.com
