Nigeria’s inflation rate has shown signs of moderation, easing for the second consecutive month in February 2025.
This development has raised hopes that the country’s price pressures may have peaked, offering a glimmer of relief for households and businesses.
Key Details:
- Inflation Rate: The National Bureau of Statistics (NBS) reported that the headline inflation rate dropped to 23.18% in February 2025, down from 24.48% in January 2025. This represents a month-on-month decrease of 1.30 percentage points.
- Year-on-Year Comparison: On a year-on-year basis, the inflation rate fell by 8.52 percentage points, compared to 31.70% in February 2024. This decline reflects a significant slowdown in price increases over the past year.
- Contributing Factors: The easing of inflation has been attributed to the Central Bank of Nigeria’s monetary tightening policies, relative stability in the naira, and declining food and fuel prices. The rebasing of the Consumer Price Index (CPI) by the NBS, which expanded the inflation basket from 740 to 960 items, also played a role in capturing current household spending patterns more accurately.
While prices are still rising, the slowdown suggests a gradual easing of inflationary pressures in the economy. Analysts remain cautiously optimistic, noting that further stabilization of the naira and sustained efforts to address supply chain disruptions will be crucial in maintaining this trend.
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