The National Bureau of Statistics (NBS) has published that the Headline inflation rate on a year-on-year basis stood at 24.48% in January 2025.
The sharp decline from the inflation rate of 34.8% in December 2024 is due to the rebasing of Consumer Price Index (CPI) by the National Bureau of Statistics.
The National Bureau of Statistics (NBS) recently rebased the CPI to replace outgoing reference periods (2009). Rebasing aligns the price and weight reference periods with the current economic environment, ensuring methodological accuracy, updating the composition of the goods and services basket, revising item weights, and incorporating necessary improvements.
Since consumption patterns evolve, the CPI basket is updated regularly, including the addition of new items. The weight reference period is now 2023, and the price reference period (Base year) is 2024. The updated CPI covers 934 product varieties classified into 13 divisions under the COICOP 2018 framework.
The CPI framework includes indices such as the Urban National Index, Rural National Index, Headline Index, Food Index, Core Index, Imported Food Index, Goods Index, Services Index, Energy Index, All Items Less Farm Produce Index, and Farm Produce Index. This system ensures accurate price tracking across different sectors and regions, supporting economic analysis and policy formulation.
The rebased All Items index in January 2025 was 110.68, while the Headline inflation rate on a year-on-year basis stood at 24.48% in January 2025. This means that the general prices of goods and services in Nigeria increased by 24.48% compared to January 2024.
The rebased Food Index in January 2025 was 110.33, while the Food Inflation rate on a year-on-year basis stood at 26.08% in January 2025. This means that the general prices of Food items in Nigeria increased by 26.08% compared to January 2024.
The rebased Core Index in January 2025 was 110.87, while the Core Inflation rate on a year-on-year basis stood at 22.59% in January 2025. This means that the general prices of Core items in Nigeria increased by 22.59% compared to January 2024.
Source: Nigeria’s inflation rate drops to 24.48% from 34.8% – StocksWatch
