NIGERIA’s headline inflation declined for the second consecutive time to 23.18 per cent in February, the National Bureau of Statistics (NBS) has said.
It disclosed this in its latest Consumer Price Index (CPI) report released on Monday, March 17.
The data shows that headline inflation eased to 23.18 per cent in February from 24.48 per cent in January.
Inflation had fallen sharply from 34.80 per cent in December 2024 to 24.48 per cent in January this year.
A look at the movement indicates that the inflation rate decreased by 1.30 per cent in February relative to the January figure.
It was the first major drop in over a decade after the NBS made 2024 its base year instead of 2009 used previously.
On a year-on-year basis, headline inflation dropped by 8.52 per cent when compared to 31.70 per cent recorded in February 2024.
Food inflation, a key driver of the headline rate, also dropped to 23.51 per cent compared to 26.08 per cent in January.
This does not necessarily mean that the prices of commodities have dropped sharply as a recent interview published by The ICIR spotlighted that the cost of living has remained high.
In 2024, inflation rose to a 28-year high after President Bola Tinubu removed petrol subsidy and devalued the Nigerian currency.
At its first rate-setting meeting of the year in February, the Central Bank of Nigeria (CBN) decided to leave its key interest rate at 27.5 per cent after six hikes last year.
The ICIR reported that the inflation rate began to decline in January after the NBS rebased the Nigerian economy.
The CPI rebasing means updating the reference year used to gauge price levels in the country by essentially changing the basket of goods and services used to measure inflation to better reflect current consumer spending patterns and ensure the inflation data accurately reflects the economy’s current state.
Unlike in the past, where the base year was 2009, the NBS now set the base year to 2024, which means comparing prices in 2025 with prices in 2024 instead of 2009.
The CPI data provides the needed information for the government, firms, and households to make informed decisions on matters related to price levels and changes in prices.
It involves replacing outdated items with new ones that better represent what people currently buy, according to the NBS.