Nigeria’s annual inflation rate decreased to 23.18% in February 2025, the lowest since June 2023, and food inflation fell to 23.51%. The decline is primarily due to the rebasing of the Consumer Price Index. However, the CPI rose by 2% month-to-month.
In February 2025, Nigeria’s annual inflation rate fell to 23.18%, the lowest level recorded since June 2023, down from 24.48% in January. This decline marks a significant reduction and indicates a favorable trend in the country’s economic landscape. Additionally, food inflation saw a notable decrease, dropping to 23.51%, the lowest rate observed since September 2022.
The reduction in inflation is largely attributed to a technical adjustment made by the National Bureau of Statistics, which rebased the Consumer Price Index to 2024 from the previous base year of 2009 in January 2025. This move has allowed for a more accurate reflection of the current economic conditions.
Furthermore, it is important to note that on a month-to-month basis, the Consumer Price Index (CPI) experienced a 2% increase, suggesting that while inflation is declining annually, there are still pressures evident in the short term.
The decline in Nigeria’s inflation rate to 23.18% in February 2025 highlights a positive shift in the economic environment, driven in part by the rebasing of the Consumer Price Index. Food inflation, too, shows improvement, suggesting potential stability in consumer prices going forward. Despite this, a 2% month-on-month increase in CPI indicates ongoing inflationary pressures.
Original Source: www.tradingview.com
