Nigeria’s Food Inflation Declines to 23.51% in February 2025 Amid Price Stabilization

Nigeria’s food inflation dropped to 23.51% in February 2025 from 37.92% in February 2024, indicating a significant easing in food price pressures. The decline is attributed partially to a new base year for measurement, with average prices for staples like yam and potatoes falling. Regional variances are apparent, with some states experiencing much higher inflation rates, while others saw price stabilization, suggesting a mixed outlook for food cost trends.

In February 2025, Nigeria’s food inflation rate decreased to 23.51%, a significant reduction from the 37.92% recorded in the previous year, as reported by the National Bureau of Statistics (NBS). This decline indicates a moderation in the increase of food prices, although the most recent month-on-month data still shows rising costs. Factors contributing to this change include a base year adjustment for the inflation measurement.

The report further notes that February’s monthly food inflation was recorded at 1.67%, demonstrating a slower rate of increase than in January 2025. This suggests that while food prices are on the rise, the rate of escalation has lessened, indicating potential improvements in supply conditions or stabilization of exchange rate pressures.

Key staples such as yam tubers, potatoes, soybeans, maize flour, cassava, and dried bambara beans experienced lower price increases in February compared to previous months. The decline in food inflation hints at enhanced supply conditions or reduced volatility in food prices. According to the NBS, the average annual food inflation for the twelve months ending in February 2025 was 34.74%, slightly higher than the 30.07% average in February 2024.

Despite the moderation of inflation rates, food prices continue to strongly influence overall inflation, accounting for 9.28% of the total headline inflation rate. Food inflation specifically contributed 0.82% to the monthly overall inflation, indicating that food prices are continuing to rise, albeit at a diminished pace.

Regional disparities in food inflation were notable; Sokoto experienced the highest food inflation at 38.34%, while Adamawa maintained the lowest rate at 12.18%. The higher inflation rates in states like Sokoto and Edo can be attributed to factors such as supply chain disruptions and increased transportation costs. Conversely, regions with milder increases likely benefited from improved local production and reduced reliance on imports.

Month-on-month, Sokoto also recorded the largest inflation increase at 18.83%, while regions like Ondo, Kaduna, and Oyo showed decreases in food prices, suggesting the impact of local supply improvements and effective policy initiatives to stabilize market conditions.

In summary, Nigeria’s food inflation rate has significantly reduced to 23.51% in February 2025, reflecting a year-on-year decline despite ongoing monthly price increases. The report from the NBS indicates a potential improvement in supply conditions, showcasing regional variations in inflation rates. Notably, higher inflation is driven by certain states facing supply chain challenges, while other areas benefit from local production efficiencies. Despite progress, food prices remain a primary contributor to Nigeria’s overall inflation situation.

Original Source: nairametrics.com