Nigeria’s inflation rate decreased to 23.2 percent in February, down from 24.5 percent in January, marking the second consecutive drop. This follows a methodological rebasing of the Consumer Price Index by the National Bureau of Statistics, which updated household spending patterns and increased the inflation basket’s items count from 740 to 960, with a new reference year set to 2024.
In February, Nigeria’s inflation rate decreased to 23.2 percent, marking the second consecutive monthly decline following a revision by the National Bureau of Statistics (NBS). The annual consumer price index (CPI) showed a reduction from 24.5 percent in January, as reported by the NBS in an email. This drop follows the NBS’s recent update of the CPI methodology, which significantly altered the public perception of inflation rates.
The NBS released rebased CPI data reflecting an adjustment from 34.8 percent to 24.48 percent. This rebasing exercise was undertaken to better align the CPI with current household spending habits and to revise the inflation basket’s composition. By modifying the reference period from 2009 to 2024, the NBS aimed to provide a more accurate reflection of contemporary consumer price trends.
The adjustment included an increase in the basket of goods and services from 740 to 960 items, thereby allowing for a more comprehensive analysis of inflation. The choice of 2024 as the new base year is notable, as this period is expected to face considerable price pressures due to various economic factors.
In summary, Nigeria’s inflation rate has experienced a notable decline to 23.2 percent as of February, attributed to a methodological rebasing by the National Bureau of Statistics. This rebasing has redefined the CPI to better reflect modern spending patterns and has expanded the inflation basket, which contributes to a clearer understanding of inflationary trends in the country.
Original Source: businessday.ng
