Nigeria’s inflation rate falls from 34.8% to 24.48%

Nigeria food market

Nigeria’s inflation rate falls from 34.8% to 24.48%

For the first time in many years, Nigeria’s inflation rate drastically dropped by 10.32 percentage points between December 2024 and January 2025.

The National Bureau of Statistics announced this on Tuesday, saying the headline inflation rate fell to 24.48 per cent in January 2025 from 34.8 per cent in December 2024.

The sharp fall, the NBS said, was achieved after the rebasing of the Consumer Price Index (CPI).

The NBS said in the statement addressing the CPI report for January the rate reflects an updated price reference period (base year) of 2024 and a weight reference period of 2023.

The NBS said, “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 per cent in January 2025.

“This means that the general prices of goods and services in Nigeria increased by 24.48 per cent compared to January 2024.”

NBS also said that the food inflation rate fell to 26.08 per cent in January 2025 from 39.84 per cent in December 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 per cent in January 2025.

“This means that the general prices of food items in Nigeria increased by 26.08 per cent compared to January 2024.”

Recall, in October 2024, the Statistician General of the Federation and Chief Executive Officer (CEO) of NBS, Adeyemi Adeniran, announced plans to rebase the Gross Domestic Product (GDP) and Consumer Price Index (CPI) to reflect current realities and account for structural changes in the economy.

According to the Bureau, the rebased CPI produces estimates that reflect the current inflationary pressure and consumption pattern of people living in Nigeria.

It added, ”With the reviewed CPI basket and adaptation of enhanced methods of compilation and computation, the CPI figures provide the needed information for the government, firms, and households to make informed decisions on matters related to price levels and changes in prices.”