By Ayomide Otitoju
Nigeria’s headline inflation rate dropped sharply to 24.48% year-on-year in January 2025, following a significant decline from 34.80% recorded in December 2024, according to the National Bureau of Statistics (NBS).
Announcing the latest figures on Tuesday, Statistician-General of the Federation, Adeyemi Adeniran, explained that the decline follows a rebasing of the Consumer Price Index (CPI) to align with international standards. He noted that urban inflation stood at 26.09%, while rural inflation was recorded at 22.15%.
The CPI rebasing, which updates the reference year used to measure inflation, ensures that price calculations better reflect current consumer spending patterns. Under the rebased framework, food inflation declined to 26.08% in January from 39.84% in December, while core inflation, which excludes volatile agricultural and energy prices, stood at 22.59%.
Adeniran emphasized that the rebased CPI provides a more accurate representation of inflationary pressures and Nigerians’ consumption patterns.
Meanwhile, Central Bank of Nigeria (CBN) Governor, Yemi Cardoso, reaffirmed the apex bank’s commitment to reducing inflation and stabilizing the economy. Speaking during a Monetary Policy Committee (MPC) meeting, he stressed the need for coordinated efforts between fiscal and monetary authorities to anchor expectations and restore purchasing power.
“Managing disinflation amidst persistent shocks requires not only robust policies but also coordination between fiscal and monetary authorities to anchor expectations and maintain investor confidence,” Cardoso stated.
The latest inflation data comes amid intensified economic reforms aimed at easing financial hardship and fostering price stability in Nigeria.
