Nigeria’s inflation rate fell to 23.18% in February 2025 from 24.48% in January, attributed to lower fuel prices and a stable naira. Food inflation slightly decreased to 23.51%. Analysts warn of a potential rise in inflation by April, while interest rates remain steady at 27.5%.
In February 2025, Nigeria experienced its first decline in inflation rates, which eased to 23.18% from January’s 24.48%, as reported by the National Bureau of Statistics. This decrease was attributed to a rebase of the Consumer Price Index (CPI) alongside lower fuel prices and a relatively stable naira. Notably, increased output from the Dangote Refinery contributed to a 33% reduction in diesel prices, although petrol prices remained stable.
Moreover, food inflation saw a slight improvement, dropping to 23.51%, a modest decrease from the previous month’s rate of 24.08%. Despite this temporary relief, analysts caution that inflation rates could rise again by April due to ongoing global economic challenges. In response to recent macroeconomic developments, the country’s Monetary Policy Committee decided to maintain the interest rates at 27.5%.
In summary, Nigeria’s inflation showed a slight decrease in February 2025 driven by lower fuel prices and a stable naira. However, analysts remain cautious about potential future increases due to global economic factors. The Monetary Policy Committee’s decision to hold interest rates steady reflects a careful assessment of the current economic landscape.
Original Source: iafrica.com
