Nigeria’s headline inflation rate has fallen to 24.48% year-on-year in January 2025. This marks a significant decrease from the 34.80% inflation recorded in December 2024.
The update comes from the National Bureau of Statistics (NBS), as announced by the Statistician-General of the Federation, Adeyemi Adeniran, during a briefing in Abuja on Tuesday.
Adeniran explained that the Consumer Price Index (CPI)—which measures the rate of change in prices for goods and services—has dropped to 24.48% year-on-year in January. He noted that urban inflation is currently at 26.09%, while rural inflation stands at 22.15%.
The decline in general prices for goods and services is attributed to a shift from the old inflation measurement methodology to a rebased CPI that aligns with international standards. CPI rebasing involves updating the reference year used to assess price levels, which includes changing the basket of goods and services to better reflect current consumer spending patterns.
According to the CPI figures for the review period, the rebased food inflation stands at 26.08% year-on-year in January, down from 39.84% year-on-year in the previous month. Similarly, the rebased core index—which excludes volatile agricultural produce and energy prices—has registered a rate of 22.59% year-on-year in January.
The NBS reports that the rebased CPI reflects the current inflationary pressures and the consumption patterns of individuals living in the country.
Earlier this month, Yemi Cardoso, the governor of the Central Bank of Nigeria (CBN), reiterated the bank’s commitment to reducing inflation and stabilizing the economy.
“Managing disinflation amidst persistent shocks requires not only robust policies but also coordination between fiscal and monetary authorities to anchor expectations and maintain investor confidence,” Cardoso stated during the 2025 Monetary Policy Forum in Abuja. “Our focus must remain on price stability, the planned transition to an inflation-targeting framework, and strategies to restore purchasing power and ease economic hardship.”
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