Nigeria's Inflation Declines to 24.48% Following CPI Rebasing

Nigeria's National Bureau of Statistics (NBS) has released a rebased Consumer Price Index (CPI) report, indicating a headline inflation rate of 24.48% for January 2025, down from 34.80% in December 2024. This rebasing reflects significant changes in consumption patterns, with food inflation also decreasing to 26.08%. The new CPI methodology aims to provide a more accurate measure of inflation by incorporating a broader range of goods and services. Despite the decline, analysts caution that challenges such as rising food prices and currency depreciation persist, impacting household incomes. The NBS emphasized that while the updated inflation rate may appear improved, it does not necessarily indicate enhanced purchasing power for Nigerians. Stakeholders are closely monitoring the implications of this rebasing for future economic policies and strategies.