Nigeria’s headline inflation rate has dropped to 24.48% year-on-year in January 2025, following the rebasing of the Consumer Price Index (CPI), according to data released by the National Bureau of Statistics (NBS).
There is a decline in the general price level of goods and services compared to 34.80% in December 2024, which was calculated using the previous methodology.
The recent rebasing of Nigeria’s CPI by the NBS significantly altered inflation metrics across the country.
The NBS updated the base year from 2009 to 2024, revised the weighting structure to reflect current spending patterns, and expanded the product basket to better capture household consumption. The shift from the Dutot index to the Jevon index also improved price measurement accuracy. While the revised CPI figures suggest lower inflation, the reality for many households remains unchanged, as food and essential goods continue to drive up living costs.
However, despite this methodological change, regional disparities in the cost of living persist, with some states remaining significantly more expensive than others.