Nigeria’s inflation rate declined to 23.18% in February 2025, marking a slight drop from 24.1% recorded in January 2025.
This is according to the newly-released Consumer Price Index and Inflation by the National Bureau of Statistics (NBS) for February 2025.
The agency last month overhauled the consumer price index for the first time in 16 years and changed the reference year to 2024, which it said would better reflect the inflation pressures facing households in Nigeria.
According to the agency, the February 2025 Headline inflation rate showed a decrease of 1.30% compared to the January 2025 Headline inflation rate.
The NBS said “On a year-on-year basis, the Headline inflation rate was 8.52% lower than the rate recorded in February 2024 (31.70%). This shows that the Headline inflation rate (year-on-year basis) decreased in February 2025 compared to the same month in the preceding year (i.e., February 2024), though with a different base year, November 2009 = 100. Furthermore, on a month-on-month basis, the Headline inflation rate in February 2025 stood at 2.04%.”
Rural and Urban dynamics
The NBS reported that the urban inflation rate stood at 25.15% in February 2025, reflecting an 8.51 percentage point decline from the 33.66% recorded in February 2024. On a month-on-month basis, urban inflation was 2.40% for February 2025. Additionally, the twelve-month average urban inflation rate was 32.22%, marking a 4.28 percentage point increase from the 27.93% recorded in February 2024.
It was reported that the rural inflation rate stood at 19.89% in February 2025 on a year-on-year basis, representing a 10.09 percentage point decline from the 29.99% recorded in February 2024. On a month-on-month basis, rural inflation was 1.16% in February 2025. Additionally, the twelve-month average rural inflation rate was 27.94%, reflecting a 3.33 percentage point increase from the 24.61% recorded in February 2024.
Food inflation
The NBS reported that the food inflation rate in February 2025 stood at 23.51% year-on-year, marking a 14.41 percentage point drop from the 37.92% recorded in February 2024. This notable decline is largely attributed to the recent change in the base year for inflation calculations. On a month-on-month basis, food inflation was 1.67% in February 2025, reflecting a decrease in average food prices compared to January 2025.
Earlier, Nairametrics reported that food prices in the Federal Capital Territory (FCT) and its surrounding areas have started to decline.
What you should know
- The drop in inflation could signal improved economic stability, but it does not necessarily translate into lower prices in the immediate term.
- Instead, the slower pace of inflation means that prices are rising at a reduced rate, offering some relief to households and businesses struggling with high costs.
