Nigeria’s inflation rate decreased to 23.18% year-on-year in February 2025, following a rebasing of the Consumer Price Index. This decline comes after substantial increases last year due to economic reforms. The central bank has held interest rates steady, reflecting optimism in foreign exchange stability and falling inflation rates.
As of February, Nigeria’s inflation rate has decreased to 23.18% year-on-year, as reported by the National Bureau of Statistics (NBS). This drop follows a significant reduction from 34.80% in December and 24.48% in January, marking the most noteworthy decline in over a decade. This development occurred subsequent to the NBS’s revision of the Consumer Price Index to better align with contemporary consumption habits.
The previous year saw inflation reaching its peak at 28-year highs, primarily due to President Bola Tinubu’s initiative to eliminate costly subsidies and devalue the naira after assuming office in 2023. These measures aimed to stabilize the economy, leading to the recent changes in inflation rates.
During its initial monetary policy meeting of the year, Nigeria’s central bank opted to maintain its key interest rate, following six consecutive increases in the previous year. Officials cited stabilizing foreign exchange rates and decreasing inflation as key factors influencing this decision.
In conclusion, Nigeria’s inflation rate has shown a significant decline in February 2025, falling to 23.18% year-on-year. This follows the implementation of an updated Consumer Price Index and reflects ongoing economic adjustments under President Bola Tinubu’s administration. The central bank’s decision to maintain interest rates indicates a cautious yet positive outlook on economic stability.
Original Source: money.usnews.com
