Nigeria’s Inflation Slows to 24% After Data Revision

BREAKING NEWSFebruary 18, 2025 at 10:25 AM UTC

TLDR

Nigeria’s annual inflation rate dropped to 24.5% in January from an unrevised 34.8% in December
The revision, the first in 16 years, rebased the Consumer Price Index to reflect current consumption patterns
The recalibration of inflation data introduces uncertainty over the central bank’s next interest rate decision

Nigeria’s annual inflation rate dropped to 24.5% in January from an unrevised 34.8% in December after the National Bureau of Statistics (NBS) adjusted its methodology for calculating household expenditures.

The revision, the first in 16 years, rebased the Consumer Price Index to reflect current consumption patterns. Food inflation also slowed to 26.1% from an unrevised 39.8% in December.

The recalibration of inflation data introduces uncertainty over the central bank’s next interest rate decision, as policymakers assess the real impact of price pressures.

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Key Takeaways

Nigeria’s inflation surge has been driven by President Bola Tinubu’s economic reforms, including the removal of fuel subsidies and the naira devaluation. These policies aim to stabilize public finances but have intensified cost-of-living pressures. The revised inflation data could influence monetary policy decisions, with the central bank needing to balance inflation control with economic growth. Investors and analysts will watch for the bank’s next move as Nigeria navigates inflationary risks and reform-driven economic shifts.

Nigeria

Economy

CBN

Inflation

Consumer Prices

Interest Rate