Nigeria’s headline inflation rate declined from 34.80% in December 2024 to 24.48% in January 2025 following the rebasing of the Consumer Price Index, the National Bureau of Statistics announced on Tuesday.
The rebasing exercise, first disclosed by the NBS in October 2024, involved updating the weight and price reference periods used in calculating inflation to better reflect current economic realities and consumption patterns.
Nigeria’s inflation rate had been on an upward trajectory, reaching a near 30-year high of 34.8% in December 2024.
Food inflation, which accounted for over 50% of the old inflation basket, also moderated from 39.93% in November to 39.84% in December.
However, speaking in Abuja, the Statistician-General of the Federation, Adeyemi Adeniran, said the adoption of the new methodology resulted in a significant drop in the inflation rate, which now stands at 24.48% year-on-year for January 2025.
The NBS report further revealed that rebased food inflation stood at 26.08% in January, down from the 39.84% recorded in December.
Similarly, core inflation, which excludes volatile agricultural produce and energy, fell to 22.59% from 29.28% in the previous month.
Urban inflation was recorded at 26.09%, compared to 37.29% in December, while rural inflation dropped to 22.15% in January from the previous methodology’s estimate of 32.47% in December.
The report stated in part, “The all-items index, which measures headline inflation for January 2025, stood at 110.7, resulting in a headline inflation rate of 24.48% year-on-year. This increase was largely driven by Food and Non-Alcoholic Beverages, Restaurants and Accommodation Services, and Transport.
“The Food Index for January 2025 was 110.03, translating to a Food Inflation rate of 26.08% year-on-year.
“The Core Index, which excludes farm produce and energy, stood at 110.7 for January 2025, resulting in a Core Inflation rate of 22.59% year-on-year.
“Disaggregated by sector, urban inflation was recorded at 26.09%, while rural inflation stood at 22.15%.
“As part of efforts to enhance CPI reporting, the NBS will now publish new special indices to aid policymakers. These include the Farm Produce Index, Energy Index, Services Index, Goods Index, and Imported Food Index.
“For January 2025, these new indices produced specific inflation rates. However, as these indices are newly introduced, year-on-year rates will commence from January 2026, while month-on-month tracking will begin in February 2025.”
The revised methodology is expected to provide a more accurate picture of Nigeria’s inflationary trends, guiding economic policies and interventions.
