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

• Nigeria’s inflation dropped to 24.48 per cent in January 2025
• The drop followed the rebasing of the Consumer Price Index
• The National Bureau of Statistics said the CPI rebasing reflects the current inflationary pressures

The National Bureau of Statistics (NBS) says Nigeria’s headline inflation dropped to 24.48 per cent in January 2025 from 34.80 per cent in December 2024.

The drop in the inflation figures follows the rebasing of the Consumer Price Index (CPI), reflecting an updated price reference period (base year) of 2024 and a weight reference period of 2023.

This was disclosed by the Statistician General, Prince Adeyemi Adeniran, in Abuja at the launch of the rebased CPI report on Tuesday, February 18.

Adeniran also stated that the food inflation was 26.08 per cent year-on-year for January 2025, a decrease from the 39.84 per cent recorded in December 2024, which was computed using the old template.

According to a statement on the official X page of the NBS, he January 2025 inflation was mostly driven by food, beverages, clothing, and footwear items.

Adeniran also said urban inflation stood at 26.09 per cent, while rural inflation stood at 22.15 per cent in January 2025.

The exclusion of the prices of volatile agricultural produce and energy led to a core inflation of 22.59 per cent.

Rebased figures reflect current inflationary pressures – NBS

Adeniran noted that the rebased CPI reflects the current inflationary pressures in the country.

The rebasing of the CPI, according to the NBS, adds new items to the composition of the inflation basket to reflect the current consumption pattern and spending of citizens.

The NBS, in October 2024, announced plans to rebase the CPI and Gross Domestic Product (GDP) data to ensure the economy is streamlined according to changing economic realities and make for structural changes.

The NBS had chosen 2019 as the new base year but changed it to 2024. The rebased inflation report for December 2024 was supposed to be released at the end of January 2025, but the NBS failed to do so.

CPI rebasing: Analysts reluctant to forecast January inflation

Meanwhile, TheRadar earlier reported that due to the delay in the release of the rebased Consumer Price Index (CPI) report by the National Bureau of Statistics (NBS), analysts were cautious and reluctant to forecast the January 2025 inflation figures.

Analysts note that without a clear figure from the revised CPI, it will be difficult and nearly impossible to make accurate predictions about inflation.