Nigeria’s inflation slows for second consecutive month after rebasing

…CPI slows to 23.2% in February

Nigeria’s inflation fell to 23.2 percent in February, the second consecutive drop after the National Bureau of Statistics (NBS) changed its methodology.

Annual consumer prices rose 23.2 percent in February from 24.5 percent in January, according to data by NBS in an email on Monday.

Last month, the National Bureau of Statistics (NBS) released the rebased Consumer Price Index (CPI) data of 24.48 percent from 34.8 percent.

Read also: Nigeria inflation seen cooling further in February ahead official data

According to the Bureau, the rationale for the rebasing exercise was to provide an updated methodology for capturing current household spending patterns and revise the composition of the country’s inflation basket.

Consequently, the NBS changed the price reference period (base year) from 2009 to 2024 and expanded the nation’s inflation basket from 740 items to 960 items. The decision to peg 2024 as the new base year was significant, as it was a period characterised by significant price pressures due to a combination of factors.