Nigeria’s inflation rate dropped to 24.48% in January 2025 from 34.80% in December after the National Bureau of Statistics rebased the CPI

Nigeria’s inflation rate fell significantly to **24.48% in January 2025** from **34.80% in December 2024**, following the rebasing of the **Consumer Price Index (CPI)** by the **National Bureau of Statistics (NBS)**.

The updated CPI, which now uses **2025 as the base year** and **2024 as the weight reference period**, provides a more accurate reflection of price movements across the economy.

Despite the decline in headline inflation, **food inflation remained high at 26.08%**, while **core inflation**, which excludes food and energy prices, stood at **22.59%**. Urban areas experienced a higher inflation rate of **26.09%**, compared to **22.15%** in rural areas.

As part of the rebasing, the **NBS introduced sector-specific indices** to track price changes more effectively. The special indices for January 2025, with 2024 as the base year (100), are as follows:

– **Farm Produce Inflation:** 10.50%
– **All Items Less Farm Produce:** 10.70%
– **Energy Index:** 8.90%
– **Services Index:** 10.41%
– **Imported Food Index:** 11.47%

The imported food index at **11.47%** indicates that **currency fluctuations and global supply chain disruptions** are still impacting food prices.

The **energy index at 8.90%** reflects **ongoing fuel and electricity cost pressures**, which continue to affect businesses and consumers.

The sharp drop in inflation signals **potential economic stability**, possibly influenced by **government policy interventions, improved supply chains, and currency adjustments**.

However, analysts warn that sustained progress will require **targeted efforts** in **food production, infrastructure development, and exchange rate management**.