Nigeria’s inflation rate drops to 24.48% in January 2025 amid CPI rebasing 

The report highlights a decline in the general price level of goods and services compared to 34.80% in December 2024, which was calculated using the previous methodology. 

The Statistician-General of the Federation, Adeyemi Adeniran, disclosed this on Tuesday during a press briefing in Abuja, noting that the rebased inflation figures provide a more accurate representation of consumer spending patterns and economic realities in the country.

According to the latest NBS report, urban inflation stood at 26.09%, while rural inflation was recorded at 22.15%. The report highlights a decline in the general price level of goods and services compared to 34.80% in December 2024, which was calculated using the previous methodology.

Adeniran explained that the rebased Consumer Price Index (CPI) involved updating the reference year and modifying the basket of goods and services used in inflation measurement.

This adjustment ensures that inflation figures better reflect current economic conditions and consumer spending habits.

The rebased food inflation index stood at 26.08% year-on-year in January 2025, indicating a decline from the 39.84% recorded in December 2024 under the old methodology.

The NBS noted that the rebasing of the CPI is a critical step in ensuring that inflation data remains relevant and reflective of economic realities.

The previous base year did not adequately capture the changes in consumer behavior, emerging market trends, and shifts in spending patterns over time.

Economists argue that while the lower inflation figures offer some relief, the cost of living remains high, and the impact of inflation continues to be felt across various sectors.

The effectiveness of government policies, including monetary tightening by the Central Bank of Nigeria (CBN) and fiscal interventions aimed at stabilizing prices, will be crucial in determining future inflation trends.