By Gwurld4026 
CPI Rebasing Leads to Lower Inflation in Nigeria
In January 2025, Nigeria’s annual inflation rate experienced a significant decline to 24.48%, down from 34.80% in December 2024. This reduction is primarily attributed to the National Bureau of Statistics (NBS) rebasing the Consumer Price Index (CPI) to reflect updated consumption patterns, with 2024 now serving as the new base year.
The rebasing process involved updating the reference year and modifying the basket of goods and services used to measure inflation, ensuring that the figures more accurately represent current economic conditions and consumer spending habits.
Despite the statistical decline, underlying inflationary pressures persist, influenced by policy changes such as the removal of subsidies and currency devaluation. Food inflation, a significant component, was recorded at 26.08% year-on-year in January.