Nigeria’s inflation rate drops to 24.48% in January 2025 after CPI rebase

Nike Popoola

The National Bureau of Statistics (NBS) has reported a significant reduction in Nigeria’s headline inflation rate, which dropped to 24.48% in January 2025.

This marked a decrease from 34.80% recorded in December 2024, largely attributed to the rebasing of the Consumer Price Index (CPI), a primary metric for tracking inflation.

The Statistician-General of the federation, Adeyemi Adeniran, during a press briefing in Abuja on Tuesday, said the CPI, which tracks changes in the prices of goods and services, declined to 24.48% year-on-year in January.

Adeniran highlighted that urban inflation was recorded at 26.09%, while rural inflation stood at 22.15% for the period under review. He attributed the drop in the general price level of goods and services to the CPI rebasing, which introduced a new template for measuring inflation. The previous rate of 34.80% in December was based on the old methodology.

Rebasing of the CPI

The CPI, a crucial tool for tracking the price changes of goods and services, underwent a significant rebasing process. Rebasing involves revising the base year used to calculate inflation and updating the weight of various items in the basket of goods. This ensures that the index reflects more current spending habits and consumption patterns of Nigerian households.

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