Nigeria’s headline inflation drops to 24.48% after January rebasing

The National Bureau of Statistics (NBS) has announced a decline in Nigeria’s headline inflation rate to 24.48% for January 2025, following the rebasing of the Consumer Price Index (CPI), marking a decrease from December 2024’s 34.80% under the old inflation template.

The CPI rebasing reflects updated consumer spending patterns, replacing outdated goods and services with current ones to better gauge inflation. With the new base year of 2024, the January inflation rate reflects more recent price comparisons.

The rebased food inflation stood at 26.08% year-on-year in January, down from 39.84% in December. Core inflation, excluding volatile agricultural and energy prices, dropped to 22.59% from 29.28% in the previous month. Urban inflation also declined to 26.09%, while rural inflation decreased to 22.15%.

The NBS stressed that while inflation appears lower, this decline is largely due to the shift in the base year and the updated inflation basket, rather than a reduction in overall price levels.

The rebased CPI is designed to provide more accurate data for government, businesses, and households to make informed decisions, with the NBS reaffirming its commitment to producing reliable statistics in line with global standards.