Nigeria’s headline inflation has dropped to 24.48 per cent year on year in January 2025 according to the rebased Consumer Price Index (CPI).
CPI rebasing means updating the reference year used to gauge price levels in the country by essentially changing the basket of goods and services used to measure inflation, to reflect current consumer spending patterns and ensure the inflation data accurately reflects the economy’s current situation.
According to the National Bureau of Statistics (NBS), this is a sharp decline from the 34.80 per cent headline inflation recorded in December 2024, the Statistician-General of the Federation Adeyemi Adeniran announced on Tuesday, February 18, 2025.
The NBS boss offered no reason why the figures for year on year was adopted, rather than the month on month that has been the usual practice.
He disclosed that the Consumer Price Index (CPI) which measures the rate of change in prices of goods and commodities has declined to 24.48 per cent year on year in January.
Adeniran who was speaking during a briefing in Abuja, explained that urban inflation stood at 26.09 per cent while rural inflation came to 22.15 per cent.
He said that the general prices of goods and services in the country declined, compared to the 34.80 per cent in December, which used the old template.
According to the CPI figures for the period under review, the rebased food inflation stood at 26.08 per cent year-on-year in January, representing a decline in the food index when compared with 39.84 per cent year-on-year recorded in the preceding month.
Similarly, the rebased core index which excludes the prices of volatile agricultural produce and energy stood at 22.59 per cent year on year in January.
According to the NBS, the rebased CPI reflects the current inflationary pressure and consumption pattern of people living in the country.
By Babajide Okeowo