Nigeria’s headline inflation continued its downward trend for the second consecutive month following the rebasing of the Consumer Price Index (CPI). According to the National Bureau of Statistics (NBS), inflation eased to 23.18% in February 2024, marking a 1.30 percentage point drop from 24.48% in January. On a year-on-year basis, this represents an 8.52 percentage point decline in headline inflation.

For the period under review, month-on-month inflation stood at 2.04% in February. Additionally, food inflation saw a 14.41 percentage point decrease year-on-year, dropping to 23.51% in February, compared to 37.92% in the corresponding period last year.

NBS, however, pointed out that the significant decline in food inflation was technically due to the change in the base year, following the recent rebasing of CPI from 2009 to 2024.

Nonetheless, the food index month-on-month, stood at 1.67 per cent, with the average annual rate for the 12 months ending February 2025 over the previous 12-month average at 34.74 per cent, compared to 30.07 per cent in February last year.

NBS stated, “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.”

Core inflation, which excludes the prices of volatile agricultural produces and energy, also declined by 2.12 per cent to 23.01 per cent, year-on-year in February 2025, compared to the 25.13 per cent in February 2024.

On a month-on-month basis, the core index stood at 2.52 per cent in February while the average 12-month annual inflation rate was 25.33 per cent for the 12 months ending February 2025, higher than 21.72 per cent in February 2024.

The statistical agency further noted that food and non-alcoholic beverages; restaurants and accommodation services; and transport contributed 9.28 per cent, 2.99 per cent and 2.47 per cent, respectfully, to inflation.