In February, Nigeria’s inflation rate fell to 23.2%, a drop from January’s 24.5%. This marks the second consecutive decrease, following the NBS’s rebasing of the Consumer Price Index. The changes aim to reflect current household spending and have shifted the baseline year from 2009 to 2024, with an expanded inflation basket containing 960 items.

In February, Nigeria’s inflation rate decreased to 23.2 percent, marking the second consecutive month of decline following a methodology update from the National Bureau of Statistics (NBS). This reduction from January’s rate of 24.5 percent came after the NBS published revised Consumer Price Index (CPI) data, reflecting a drop from 34.8 percent previously reported.

The NBS conducted a rebasing of the CPI to better capture current household spending patterns and to update the inflation basket’s composition. The new base year for price references has shifted from 2009 to 2024, expanding the inflation basket from 740 to 960 items. Adopting 2024 as the new base year is particularly noteworthy due to the significant price pressures prevailing during this period.

Nigeria has observed a downward trend in its inflation rate for two consecutive months, with February’s rate being recorded at 23.2 percent. This shift is attributed to the NBS’s methodology adjustments and the expansion of the inflation basket, aimed at reflecting contemporary economic conditions. The rebasing to 2024 as the new reference year is significant for capturing current consumer price trends more accurately.

Original Source: businessday.ng