Nigeria’s Inflation Rate Decreases to 23.2 Percent Following Methodology Rebase

Nigeria’s inflation rate dropped to 23.2 percent in February, marking the second decrease following a rebasing by the NBS. This decline follows the new Consumer Price Index which adjusted from 34.8 percent to 24.48 percent. The rebasing included revising the base year to 2024 and expanding the inflation basket to better capture household spending.

In February, Nigeria’s inflation rate decreased to 23.2 percent, marking the second consecutive decline following the National Bureau of Statistics’ (NBS) methodology overhaul. In January, the annual consumer price increase was recorded at 24.5 percent, according to NBS data released via email. Last month, the NBS introduced a new rebased Consumer Price Index (CPI) figure of 24.48 percent, a reduction from 34.8 percent.

The NBS implemented the rebasing to better align with contemporary household spending habits and to revise the inflation basket’s composition. This effort involved altering the price reference period (base year) from 2009 to 2024 and increasing the inflation basket from 740 to 960 items. Setting 2024 as the new base year is pivotal, as it reflects a time of heightened price pressures due to various influencing factors.

In conclusion, Nigeria’s inflation has shown signs of a downward trend, falling to 23.2 percent in February. This change follows the NBS’s recent rebasing of the Consumer Price Index, aimed at reflecting updated household spending patterns. The adjustments made to the inflation basket and the new base year are essential for accurate monitoring of inflation moving forward.

Original Source: businessday.ng