The National Bureau of Statistics (NBS) has announced a decline in Nigeria’s inflation rate, revealing that the headline inflation dropped from 24.48% in January 2025 to 23.18% in February 2025.
The latest Consumer Price Index (CPI) report, published on Monday, highlights a 1.30% decrease in inflation compared to the previous month. This marks a positive shift for the economy as inflationary pressures begin to ease.
Key Highlights of the Report
The NBS report provides a breakdown of the inflation trends, comparing figures on both a monthly and yearly basis:
Year-on-Year Inflation: The headline inflation rate in February 2025 was 8.52% lower than the 31.70% recorded in February 2024. This indicates that inflationary pressures have significantly eased compared to the same period last year.
Month-on-Month Inflation: In February 2025, the month-on-month inflation rate stood at 2.04%, suggesting a more moderate increase in the general price level compared to the sharp rises seen in previous months.
The NBS noted that the current figures are based on a new base year, November 2009 = 100, ensuring more accurate inflation tracking.
What This Means for the Economy
The drop in inflation is a positive sign for the Nigerian economy, reflecting a potential stabilization of prices across key sectors such as food, transportation, and energy. However, economists warn that despite the decline, inflation remains relatively high and could still impact the purchasing power of consumers.
A significant contributor to the easing inflation could be government policies aimed at controlling food prices, improving agricultural production, and stabilizing foreign exchange rates. The Central Bank of Nigeria’s (CBN) recent monetary tightening measures, including interest rate adjustments, may also have played a role in reducing inflationary pressures.
Consumer Impact and Outlook
For the average Nigerian, a lower inflation rate could mean slower price increases for essential goods and services. However, many households are still struggling with the high cost of living, particularly in areas such as food prices, transportation, and housing.
Economic analysts suggest that further declines in inflation would be necessary to restore consumer confidence and improve living standards. The government’s focus on strengthening local production, ensuring stable fuel prices, and managing exchange rate fluctuations will be crucial in sustaining this trend.
Looking Ahead
While the February inflation report signals progress, economic experts caution that inflation could fluctuate due to external factors such as global oil prices, exchange rate movements, and agricultural output. Policymakers are expected to monitor inflation trends closely and implement measures to keep prices stable while fostering economic growth.
The NBS has assured that detailed sectoral analysis of the February 2025 inflation report will be released soon, providing further insights into the economic outlook.
More details to follow as the NBS publishes additional data.
