Nigeria's headline inflation rate decreased to 23.18% in February 2025, down from 24.48% in January, according to the National Bureau of Statistics (NBS). This marks a significant drop from the 31.70% recorded in February 2024, indicating a positive trend in the nation's economic stability.
Factors Influencing the Decline
Several key factors have contributed to this downward trend:
1. Data Rebase: The NBS recently updated the base year for its Consumer Price Index (CPI) calculations from 2009 to 2024. This rebase aligns the CPI with current consumption patterns, providing a more accurate reflection of inflation dynamics.
2. Food Inflation: Food inflation, a major component of the overall rate, decreased to 23.51% in February from 26.08% in January. The NBS attributes this decline to reduced prices of staples such as yam tubers, potatoes, soybeans, maize flour, cassava, and dried Bambara beans.
3. Petroleum Prices: Stability in petrol prices, aided by increased output from the Dangote Refinery, has helped temper inflation. Diesel prices dropped by 33% to ₦1,000 per liter, while petrol prices remained steady around ₦800 per liter, reducing transportation and production costs.
4. Monetary Policy: The Central Bank of Nigeria (CBN) maintained its benchmark interest rate at 27.5% during its recent Monetary Policy Committee meeting. This decision reflects confidence in the current economic trajectory and aims to support continued disinflation.
Regional Variations
Inflation rates varied across different regions:
Urban Areas: The urban inflation rate stood at 25.15% year-on-year, a decrease from 33.66% in February 2024.
Rural Areas: The rural inflation rate was 19.89%, down from 29.99% in the same period last year.
These variations highlight the diverse economic conditions across Nigeria's regions.
Outlook
The Nigerian government remains committed to implementing policies that promote economic stability and growth. The recent decline in inflation suggests that these measures are yielding positive results, fostering a more favorable environment for investment and consumer confidence.
Keywords: Nigeria inflation rate February 2025, National Bureau of Statistics, Consumer Price Index rebase, food inflation decline, Central Bank of Nigeria monetary policy, economic reforms, regional inflation variations.
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