Nigeria: Inflation Rate Falls To 24.48% After Rebasing CPI
The National Bureau of Statistics, NBS , has said the headline inflation rate fell by 10.32 percentage points to 24.48 percent in January 2025 from 34.8 percent in December 2024 after rebasing the Consumer Price Index (CPI).
This implied that the general prices of goods and services in the country declined compared to 34.80 percent in December, which used the old template.
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.
It involves replacing outdated items with new ones that better represent what people are buying today.
Similarly, the rebased core index which excludes the prices of volatile agricultural produces and energy, stood at 22.59 per cent year on year in January. It was 29.28 percent in the preceding month.
The rebased urban inflation also stood at 26.09 per cent year-on-year. This was 37.29 percent in December
In addition, under the rebased template, rural inflation stood at 22.15 per cent year-on-year in the review period. It was 32.47 percent in December when the old methodology was applied.
According to the NBS, the rebased CPI reflected the current inflationary pressure and consumption pattern of people living in the country.
The statistical agency however, pointed out that the decline in the rebased inflation does not mean the general price level was declining.
The NBS explained that the major factor responsible for the decline was the base year being closer to the current period.
The NBS stressed that with the reviewed inflation basket and adaptation of enhanced methods of compilation and computation, the “CPI figures provided the needed information for the government, firms, and households to make informed decisions on matters related to price levels and changes in prices,” It added.
