Nigeria’s annual inflation rate has been adjusted to 24.48% for January 2025 following a rebasing of the Consumer Price Index (CPI), the National Bureau of Statistics (NBS) has announced.
This is a drop from the 34.80% recorded in December 2024.
The rebasing exercise, which is the first in several years, was implemented to better capture current consumption patterns and align the CPI with the country’s evolving economic realities.
According to the NBS, the new methodology reflects shifts in consumer behavior and accounts for changes in spending trends and updated market data.
The adjustment comes amid rising inflationary pressures driven by recent economic reforms under President Bola Ahmed Tinubu, including the removal of fuel subsidies and the devaluation of the naira.
These measures while necessary for fiscal stability have contributed to higher living costs and sparked public discontent.
Despite the lower reported rate under the rebased system, the underlying pressures on food and energy prices remain a concern.
Economists have noted that while the rebased inflation figure may provide a more accurate picture of the economy, the cost-of-living crisis persists for many Nigerians.
The NBS explained that the rebasing exercise aims to improve transparency and provide more reliable economic indicators for policymakers and investors.
As the new methodology takes effect, analysts will be watching closely to assess whether Nigeria’s economic reforms can stabilize prices and drive sustainable growth.
