The National Bureau of Statistics (NBS) has said that the rebasing of the Consumer Price Index (CPI) will better reflect current price volatility and provide a clearer understanding of economic trends which will inform policy making.
“Rebased CPI reflects current price volatility. It serves as an input into monetary and fiscal policy formulation.
“The outcome of this rebasing can be compared with other countries’ CPI because international standards were followed in the process of rebasing the CPI,” NBS said in a statement issued by Sunday Ichedi, director of communication and public relations
It also emphasised that the rebased CPI is expected to improve the accuracy of economic data, offering item weights that reflect modern household spending habits and providing essential input for economic planning.
The rebased CPI, expected to be launched at the end of January 2025, updates the price reference period to 2024 and incorporates significant changes in household consumption patterns since the last rebasing in 2009.
The statement noted that exercise is vital to ensure that the CPI basket, which tracks the prices of goods and services, accurately represents present-day spending habits.
It noted that the Nigeria Living Standards Survey conducted in 2023 revealed shifts in household expenditure, particularly a marked increase in spending on telecommunications.
This, it said, highlights the need to update the basket to include new items reflecting current consumption patterns.
Semiu Adeyemi, the CEO and statistician-general of the NBS, was quoted as saying, “I would like to assure all Nigerians that the expected Rebased CPI Report will be the best of its kind and will provide further insights into the Nigerian economy.”
The NBS noted that the updated CPI would help policymakers track price movements more effectively and make informed monetary and fiscal decisions.
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It highlighted several benefits of the rebasing exercise, including a CPI basket aligned with current consumption trends, improved analysis of price volatility, and the use of international standards to enable comparisons with other countries.
The Bureau said the updated report would also serve as a valuable resource for researchers and students.
Similarly, the NBS also announced in another statement that it is finalising the rebasing of Nigeria’s Gross Domestic Product and is set to launch the updated report by the end of January 2025.
The rebased GDP will reflect the market value of all goods and services produced within the country, offering a clearer picture of overall economic activity and growth direction.
The NBS noted that GDP rebasing is essential for measuring the health of the economy and making global economic comparisons.
The rebasing exercise incorporates changes in the economy’s structure over time, including the introduction of new products and services driven by technological advancements.
The NBS highlighted that significant growth in sectors such as Marine and Blue Economy, Creative Economy, ICT, and e-activities necessitated the update.
This process ensures a more accurate representation of the economy and reflects emerging trends in economic activity.
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