Nigeria’s inflation rate dropped to 23.18% in February 2025, down from 24.48% in January, influenced by lower fuel costs and a stable naira. While food inflation also eased slightly, analysts caution against future surges due to global economic pressures. The Monetary Policy Committee has maintained interest rates at 27.5%.
In February 2025, Nigeria experienced its first decline in inflation, decreasing to 23.18% from January’s 24.48%, as reported by the National Bureau of Statistics. This improvement was attributed to a rebase of the Consumer Price Index (CPI), stabilizing exchange rates, and reduced fuel prices. The increased production from the Dangote Refinery contributed to a 33% drop in diesel prices, although petrol prices remained stable. Furthermore, food inflation slightly decreased to 23.51%, down from 24.08% in January.
Despite this minor relief in inflation rates, analysts caution that inflation may rise again by April due to ongoing global economic pressures. The Monetary Policy Committee of Nigeria has decided to maintain the current interest rate at 27.5%, reflecting careful consideration of recent macroeconomic conditions. Maintaining this rate may serve to balance economic stability against external fluctuations that could impact inflation levels.
In summary, Nigeria’s inflation witnessed a temporary decline, supported by lower fuel prices and a stable currency. However, upcoming global economic challenges could threaten future stability. The constant interest rate indicates a measured response from policymakers amid these fluctuations.
Original Source: www.africa.com
