Nigeria’s inflation reached 23.1% in February 2025, influenced by higher transport and food costs. The Central Bank may consider raising interest rates in response. Analysts predict ongoing inflation challenges despite measures taken to stabilize the economy, suggesting a more extended path to achieving desired inflation targets.
In February 2025, Nigeria’s headline inflation rose to 23.1%, driven by increased transportation costs due to elevated gasoline prices and heightened consumer spending. According to data from the National Bureau of Statistics (NBS), this figure marks a slight decline from the January rate of 24.48%, following recent rebasing efforts. These inflation figures indicate that the Monetary Policy Committee may consider another interest rate hike later this year.
Food inflation also experienced an upward trend, reaching 23.51% in February as consumers faced higher costs for food, transportation, and energy. Samuel Onyekanmi, an analyst at Norrenberger, remarked on the expected rise in inflation, associating it with festive purchasing behaviors and noting the persistent high levels of food inflation driven by seasonal effects.
Onyekanmi further expressed skepticism about achieving the targeted 15% inflation rate for 2025, suggesting that while there may be potential for future stability, the current environment necessitates a careful evaluation. Despite the Central Bank of Nigeria’s (CBN) measures aimed at stabilizing the foreign exchange market, resulting in a recent strengthening of the naira, the economy continues to adapt to price shocks that have emerged since President Tinubu took office.
In conclusion, Nigeria is currently grappling with rising inflation, now at 23.1%, primarily due to increased transportation and food costs. As consumer spending habits evolve alongside seasonal influences, further adjustments will be essential. The Central Bank’s measures may stabilize the economy, but achieving lower inflation rates presents ongoing challenges in the near term. Continued monitoring of the situation will be vital as policy discussions advance.
Original Source: thecondia.com
