Nigeria’s inflation rate decreased to 23.18% in February 2025 from 24.48% in January 2025. The year-on-year rate dropped significantly by 8.52% compared to February 2024. Food inflation also saw a marked reduction to 23.51%. Core inflation, urban inflation, and rural inflation rates further highlight varying economic trends across different regions. These changes are influenced by a recent rebasing of the Consumer Price Index to a new base year, 2024.
In February 2025, Nigeria’s inflation rate decreased to 23.18%, as reported by the National Bureau of Statistics (NBS). This figure reflects a decline of 1.30% from the previously recorded rate of 24.48% in January 2025. Year-on-year, February’s inflation rate is 8.52% lower than the 31.70% observed in February 2024, indicating a significant reduction.
The report also revealed that the monthly inflation rate for February 2025 stood at 2.04%. The increase in the headline index is attributed to rising costs in various sectors, including food, accommodation, transportation, and utilities. Categories affected span a broad range, such as education, health services, clothing, and communication.
Food inflation for February 2025 decreased to 23.51% year-on-year, down by 14.41% from 37.92% in February 2024. While the NBS attributes this decline to changes in the base year, the month-on-month food inflation rate was recorded at 1.67%. Key contributors to the decline included lower prices for staples such as yam, potatoes, and flour.
Core inflation, which excludes volatile agricultural and energy prices, was reported at 23.01% year-on-year, a decrease of 2.12% from 25.13% in February 2024. Month-on-month, core inflation appeared at 2.52%. Specific rates for February 2025 included farm produce inflation at 1.77% and energy inflation at -0.99%.
Urban inflation rose to 25.15%, down from 33.66% in February 2024, while rural inflation reached 19.89%, decreasing from 29.99% the previous year. Month-on-month urban inflation was reported at 2.40%, and rural inflation at 1.16%.
State-level analysis revealed Edo had the highest year-on-year inflation rate at 33.59%, followed by Enugu at 30.72%. Conversely, Katsina exhibited the slowest inflation rise at 15.45%. Month-on-month inflation rates peaked in Sokoto at 11.98%, whereas Plateau recorded -3.37%, indicating a decline.
Food inflation saw Sokoto leading at 38.34% year-on-year, with the slowest rise found in Adamawa at 12.18%. For month-on-month, Sokoto experienced the highest rate at 18.83%. Among the factors influencing these shifts, NBS’s recent rebasing of the Consumer Price Index to reflect the current economy structure is noteworthy. This rebasing process transitioned the base year from 2009 to 2024, aligning economic indicators with contemporary data.
The NBS report indicates a promising decline in Nigeria’s inflation rate, with a significant year-on-year decrease in both headline and food inflation. Adjustments in food costs and an updated CPI base year reflect ongoing economic adjustments. The statistical shifts, alongside state-specific inflation trends, provide a comprehensive view of the nation’s economic landscape. Overall, these results might suggest increased economic stability and improved price management within various sectors.
Original Source: businessday.ng
