Nigeria's annual inflation rate dropped to 24.48% in January, a significant decrease from December's 34.80%, following a rebasing of the country's price index for the first time in over a decade.
The National Bureau of Statistics (NBS) updated the reference basket used to calculate inflation, reweighting items and shifting the comparison period from 2009 to 2024 to better reflect current consumption patterns. Statistician-General Prince Adeyemi Adeniran emphasized that the rebased data more accurately represents current inflationary pressures but cautioned that it does not indicate a sharp slowdown in inflation or a decrease in market prices.
The rebasing, supported by the World Bank, IMF, and Central Bank of Nigeria, was long overdue, as the Consumer Price Index is typically updated every five years.
