Inflation drops to 23.18% in Feb from 24.48% in Jan

From Isaac Anumihe, Abuja

Headline inflation rate in February 2025, eased to 23.18 per cent relative to the January 2025 headline infla tion rate of 24.48 per cent with food inflation accounting for 23.51 per cent on a year-on-year basis.

Looking at the movement, the February 2025 headline inflation rate showed a de crease of 1.30 per cent compared to the January 2025 headline inflation rate.

On a year-on-year basis, the headline inflation rate was 8.52 per cent lower than the rate recorded in February 2024 (31.70 per cent). This shows that the headline inflation rate (year-on-year basis) decreased in February 2025 compared to the same month in the preceding year (i.e., February 2024), though with a different base year, November 2009 = 100.

Furthermore, on a month-on-month basis, the headline inflation rate in February 2025 stood at 2.04 per cent

Meanwhile, food inflation rate in February 2025 was 23.51 per cent on a year-on-year basis.
This was 14.41 per cent lower compared to the rate recorded in February 2024 (37.92 per cent). The significant decline in the food inflation figure is technically due to the change in the base year. However, on a month-on -month basis, the food inflation rate in February 2025 was 1.67 per cent. Compared to the month of January 2025, there was an observed decline in the average prices of food items like yam tuber, potatoes, soya beans, flour of maize/cornmeal, cassava, bambara beans (dried), etc.

Recall that the Consumer Price Index (CPI) is a macroeconomic indicator that provides a general measure of
changes in the average prices of goods and services commonly purchased by consumers relative to a base period (the price reference period is 2024). The inflation rate is directly computed from the index. The inflation rate is the relative change in CPI between periods. Inflation rate is reported year-on-year (annual inflation rate) and month-on-month (monthly inflation rate). CPI is constructed using the following key variables: weights derived from estimates of household expenditures (the
weight reference period is 2023), prices collected from selected retail outlets across the 36 states
and FCT (both urban and rural), and quantities of goods and services. In the current CPI, there are
74 population strata, which are the urban and rural parts of Nigeria’s 36 states and the FCT. The CPI
basket has 242- item strata, defined by the 2018 version of Classification of Individual Consumption.

Inflation drops to 23.18% in Feb from 24.48% in Jan

From Isaac Anumihe, Abuja

Headline inflation rate in February 2025, eased to 23.18 per cent relative to the January 2025 headline infla tion rate of 24.48 per cent with food inflation accounting for 23.51 per cent on a year-on-year basis.

Looking at the movement, the February 2025 headline inflation rate showed a de crease of 1.30 per cent compared to the January 2025 headline inflation rate.

On a year-on-year basis, the headline inflation rate was 8.52 per cent lower than the rate recorded in February 2024 (31.70 per cent). This shows that the headline inflation rate (year-on-year basis) decreased in February 2025 compared to the same month in the preceding year (i.e., February 2024), though with a different base year, November 2009 = 100.

Furthermore, on a month-on-month basis, the headline inflation rate in February 2025 stood at 2.04 per cent

Meanwhile, food inflation rate in February 2025 was 23.51 per cent on a year-on-year basis.
This was 14.41 per cent lower compared to the rate recorded in February 2024 (37.92 per cent). The significant decline in the food inflation figure is technically due to the change in the base year. However, on a month-on -month basis, the food inflation rate in February 2025 was 1.67 per cent. Compared to the month of January 2025, there was an observed decline in the average prices of food items like yam tuber, potatoes, soya beans, flour of maize/cornmeal, cassava, bambara beans (dried), etc.

Recall that the Consumer Price Index (CPI) is a macroeconomic indicator that provides a general measure of
changes in the average prices of goods and services commonly purchased by consumers relative to a base period (the price reference period is 2024). The inflation rate is directly computed from the index. The inflation rate is the relative change in CPI between periods. Inflation rate is reported year-on-year (annual inflation rate) and month-on-month (monthly inflation rate). CPI is constructed using the following key variables: weights derived from estimates of household expenditures (the
weight reference period is 2023), prices collected from selected retail outlets across the 36 states
and FCT (both urban and rural), and quantities of goods and services. In the current CPI, there are
74 population strata, which are the urban and rural parts of Nigeria’s 36 states and the FCT. The CPI
basket has 242- item strata, defined by the 2018 version of Classification of Individual Consumption.