The National Bureau of Statistics (NBS) is set to release new inflation figures today, showing a significant decline in headline inflation to 24.48%, core inflation to 22.59%, and food inflation to 26.8% following the rebasing of the Consumer Price Index (CPI).
A source close to the NBS disclosed that the rebasing replaces the outdated 2009 base year with 2024, ensuring that inflation measurements align with current economic conditions. This development comes as Nigeria battles rising costs, with inflation hitting a 30-year high of 34.8% in December 2024.
Despite the sharp drop in the rebased inflation figures, analysts warn that this does not indicate a reduction in the cost of goods and services. The major reason for the decline is the shift in the base year used for comparison. Previously, the NBS measured price changes against 2009 levels, but with the new base year set to 2024, the figures now reflect a more updated economic reality.
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Nigeria's inflation rate had been rising for four consecutive months, with food inflation—making up more than 50% of the previous CPI basket—recorded at 39.84% in December, slightly lower than 39.93% in November. The new inflation figures indicate a 1,000 basis point drop in headline inflation and a 1,400 basis point reduction in food inflation.
The rebasing also comes with adjustments to the basket of goods and services used in inflation calculations. The updated CPI now incorporates new spending categories, including insurance and financial services, reflecting changes in household consumption patterns.
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