Nigeria’s inflation rate dropped to 23.18% in February 2025 from 24.48% in January, partly due to CPI rebasing. Year-on-year inflation fell from 31.70%, but prices still rose by 2.04% month-on-month. Economic stability remains uncertain.

The National Bureau of Statistics (NBS) has reported that Nigeria’s inflation rate declined to 23.18 percent in February 2025 from 24.48 percent in January 2025. This follows the recent rebasing of the Consumer Price Index (CPI), which has influenced how inflation is measured.

According to the NBS, the headline inflation rate in February 2025 decreased by 1.30 percentage points compared to January 2025. On a year-on-year basis, the inflation rate was 8.52 percentage points lower than the 31.70 percent recorded in February 2024. This suggests that inflation has slowed compared to the previous year. However, the new inflation figures are based on a rebased CPI, with November 2009 as the base year.

Despite the decline in the annual inflation rate, prices continue to rise. The month-on-month inflation rate for February 2025 stood at 2.04 percent, meaning that while inflation has slowed, goods and services are still becoming more expensive.

The impact of this inflation trend on businesses and households remains to be seen. While the reduction in the overall inflation rate may indicate some level of economic stability, the continued rise in prices suggests that many Nigerians may still struggle with the cost of living.