Nigeria’s Inflation Rate Falls To 24.48%

Nigeria’s inflation rate has dropped significantly to 24.48% year-on-year in January 2025, according to the latest figures released by the National Bureau of Statistics (NBS).

This marks a sharp decline from the 34.80% inflation recorded in December 2024, a development attributed to the rebasing of the Consumer Price Index (CPI).

Announcing the figures at a press briefing in Abuja on Tuesday, the Statistician-General of the Federation, Adeyemi Adeniran, explained that the CPI, which measures price changes for goods and services, recorded a decline for the first time in months.

He disclosed that urban inflation stood at 26.09%, while rural inflation was recorded at 22.15% in January.

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According to Adeniran, the rebasing of the CPI involves updating the reference year and adjusting the basket of goods and services to reflect current consumer spending trends.

This, he noted, ensures a more accurate representation of inflationary pressures in the economy.

A further breakdown of the figures showed that food inflation dropped to 26.08% in January from the 39.84% recorded in December 2024.

Similarly, core inflation, which excludes volatile items such as agricultural products and energy, was recorded at 22.59% year-on-year.

The NBS assured Nigerians that the rebased CPI offers a clearer picture of the nation’s economic realities and provides a better reflection of price movements in the country.

While the decline in inflation figures is seen as a positive development, many Nigerians are still grappling with high prices of essential commodities, raising concerns over whether the drop in inflation will translate to real economic relief for households.