Food inflation drops to 26.08% in January on CPI rebasing

Food inflation dropped to 26.08 percent in January 2025 on the back of the rebasing of the Consumer Price Index (CPI), data from the National Bureau of Statistics (NBS) released Tuesday shows.

The CPI report which tracks the average prices of goods and services across Nigeria now uses 2024 as a base factor in determining price surge as opposed to the old rebasing period of 2009, which was used until the end of last year.

“Food inflation rate on a year-on-year basis stood at 26.08 percent in January 2025. This means that the general prices of food items in Nigeria increased by 26.08 percent compared to January 2024,” the NBS explained in its new report.

Read also: Nigerians in survival mode as hard times persist, food inflation worsens

However, the rebased food inflation doesn’t mean a steep fall in food prices in Africa’s most populous nation in the review period. What it means is prices of food increased at a slower rate compared to the same period of 2024.

Also, due to the rebasing, food inflation fell 13.76 percent on a month-on-month basis from 39.84 percent in December 2024.

“The rebased CPI produces estimates that reflect the current inflationary pressure and consumption pattern of people living in Nigeria,” the report noted.

Adding that: “The rural inflation rate on a year-on-year basis stood at 22.15 percent in January 2025. This means that the general prices of goods and services in Rural areas increased by 22.15 percent compared to January 2024.”

Prices of food staples like beans, garri, yam, tomatoes and certain grains are currently low and affordable for households due to the bumper harvest of the 2024/2025 planting season.

The NBS reports that owing to the rebasing, food and non-alcoholic drinks drove headline inflation by 40 percent to 24.48 percent in January 2025 from 34.80 percent in December 2024.

Read also: Yam, beer, rice drive food inflation up to 39.84% in December 2024

“Headline inflation rate on a year-on-year basis stood at 24.48 percent in January 2025. This means that the general prices of goods and services in Nigeria increased by 24.48 percent compared to January 2024.”