Nigeria’s Inflation Rate Declines to 23.18% in February Amid Various Economic Changes

Nigeria’s inflation rate dropped to 23.18% in February, the lowest in recent months, from 24.48% in January. Food inflation decreased to 23.51%, while core inflation sits at 23.01%. Monthly statistics indicate varied performance across regions and sectors, suggesting broader economic implications for the country.

The National Bureau of Statistics (NBS) reported that Nigeria’s Consumer Price Index (CPI), which reflects the price changes of goods and services, has fallen to 23.18% in February, down from 24.48% the previous month. Overall, the headline inflation shows an 8.52% decrease from 31.70% in February 2024. Month-on-month, inflation stood at 2.04% in February.

Food inflation also demonstrated a significant yearly decline of 14.41%, reaching 23.51% in February, compared to 37.92% recorded in the same month last year. The NBS attributed this decrease partially to a rebasing of the CPI from 2009 to 2024. Month-on-month, food indices increased by 1.67%, with an annual average rate for the last twelve months at 34.74%, which is higher than the 30.07% recorded last February.

The core inflation rate, which excludes the prices of volatile agricultural goods and energy, also fell by 2.12% to 23.01% year-on-year as of February 2025, down from 25.13% in February 2024. The month-on-month core index was recorded at 2.52%, and the annual average inflation rate was 25.33%, up from 21.72% in the previous year.

Specific contributions to inflation were noted: food and non-alcoholic beverages contributed 9.28%, restaurants and accommodation services 2.99%, and transport 2.47%. Other contributors included housing, water, electricity, and gas, accounting for 1.95%, while education services contributed 1.44% and health 1.40%.

Year-on-year urban inflation decreased to 25.15% from 33.66% in February 2024, with a month-on-month urban index of 2.40%. Rural inflation also saw a reduction to 19.89%, down from 29.99%. Month-on-month, rural inflation changed by 1.16%.

At a state level, the highest headline inflation was recorded in Edo at 33.59%, followed by Enugu at 30.72% and Sokoto at 30.19%. Conversely, the lowest inflation rates were seen in Kaduna, Akwa Ibom, and Plateau, with rates of 15.45%, 15.53%, and 15.74%, respectively. Monthly inflation peaked in Sokoto at 11.98% while exhibiting declines in regions like Kaduna and Ondo.

In terms of food index inflation, Sokoto experienced the highest yearly increase at 38.34%, while the slowest increases were in Adamawa at 12.18% and Ondo at 13.66%. Monthly food inflation was highest in Sokoto at 18.83%, with notable decreases in Ondo, Kaduna, and Oyo.

In conclusion, the decline in Nigeria’s inflation rate to 23.18% in February signifies a substantial easing compared to previous months. The reduction in both core and food inflation, alongside adjustments from the CPI rebasing, demonstrates a complex but positive trend in the economic landscape. These shifts warrant ongoing observation as they impact consumer prices and economic stability.

Original Source: www.arise.tv