Quick Read: Nigeria’s inflation rate dropped from 34.8% in December 2024 to 24.48% in January 2025 after rebasing the Consumer Price Index (CPI). This reflects a significant improvement compared to January 2024’s 29.9% rate. Key inflation drivers included food, beverages, and transport costs. NBS plans to introduce new special indices to enhance policy insights.
National Bureau of Statistics (NBS) reported that Nigeria’s inflation rate decreased from 34.8% in December 2024 to 24.48% in January 2025, following the rebasing of the Consumer Price Index (CPI).
In its statement addressing the CPI report for January, released on Tuesday, NBS highlighted that the new rate represents an increase of 18.12% compared to the 29.9% recorded in January 2024.
Rebasing of CPI and GDP
In October 2024, Adeyemi Adeniran, Statistician-General of the Federation and CEO of NBS, announced plans to rebase both the GDP and CPI. This initiative aimed to reflect current economic realities and account for structural changes.
NBS later confirmed that 2019 was selected as the base year because “other sector-specific administrative data for this period were collected.”
Headline Inflation Details
According to Adeniran, the all-items index used to measure headline inflation for January 2025 stood at 110.7, leading to a headline inflation rate of 24.48% year-on-year.
Inflation Drivers
Adeniran identified key drivers of the increase as:
- Food and Non-Alcoholic Beverages
- Restaurants and Accommodation Services
- Transport
Food and Core Inflation Rates
- The Food Index for January 2025 was 110.03, leading to a food inflation rate of 26.08% year-on-year.
- The Core Index, which excludes farm produce and energy, stood at 110.7, resulting in a core inflation rate of 22.59% year-on-year.
Urban and Rural Inflation Rates
- Urban inflation rate: 26.09%
- Rural inflation rate: 22.15%
Introduction of Special Indices
To enhance CPI reporting, NBS announced plans to publish new special indices for policymakers:
- Farm Produce Index
- Energy Index
- Services Index
- Goods Index
- Imported Food Index
Initial Special Index Rates for January 2025
The new special indices produced inflation rates for January 2025. Since these indices are newly established, year-on-year rates will commence in January 2026, and month-on-month rates will begin in February 2025.
Summary of Key Inflation Rate Changes
- Food inflation rate: 26.08%, down from 39.84%.
- Core inflation rate: 22.59%, down from 29.28%.
- Urban inflation rate: 26.09%, down from 37.29%.
- Rural inflation rate: 22.15%, down from 32.47%.
These figures reflect Nigeria’s progress in managing inflation amid ongoing economic adjustments.
