Nigeria’s headline inflation rate eased to 23.18% in February 2025, down from 24.48% in January 2025, marking a 1.30% decline, according to the latest report from the National Bureau of Statistics (NBS). This indicates a gradual moderation in price pressures, with expectations of further easing in the coming months.
On a year-on-year basis, the inflation rate fell significantly by 8.52 percentage points, compared to 31.70% recorded in February 2024. This drop signals improving economic stability, though inflation remains a key concern for households and businesses.
Breakdown of Inflation Trends
- Month-on-Month Inflation: The inflation rate stood at 2.04% in February 2025, reflecting price movements within the month.
- 12-Month Average Inflation: The Consumer Price Index (CPI) averaged 30.09%, 3.91 percentage points higher than the 26.18% recorded in February 2024.
Urban and Rural Inflation
The report further breaks down inflation trends across urban and rural areas:
- Urban Inflation:
- Year-on-Year: 25.15%, representing a 8.51% drop from 33.66% in February 2024.
- Month-on-Month: 2.40% in February 2025.
- 12-Month Average: 32.22%, 4.28 percentage points higher than 27.93% in February 2024.
- Rural Inflation:
- Year-on-Year: 19.89%, down by 10.09 percentage points from 29.99% in February 2024.
- Month-on-Month: 1.16% in February 2025.
- 12-Month Average: 27.94%, 3.33 percentage points higher than 24.61% in February 2024.
Food Inflation Sees Notable Decline
The food inflation rate stood at 23.51% in February 2025, marking a significant decline of 14.41 percentage points from 37.92% recorded in February 2024. On a month-on-month basis, food inflation was 1.67%.
The drop in food prices was attributed to base-year adjustments and a notable reduction in the prices of staple food items such as:
- Yam tubers
- Potatoes
- Soya beans
- Maize flour
- Cassava
- Dried Bambara beans
Outlook on Inflation
The decline in inflation suggests a slight improvement in economic conditions, but challenges such as exchange rate volatility and supply chain disruptions may continue to pose risks. Analysts predict that the Central Bank of Nigeria’s (CBN) monetary policies, including interest rate adjustments, will play a crucial role in stabilizing inflation in the coming months.
