The rebasing of the CPI is a crucial step for ensuring inflation data reflects the current economic landscape. The previous base year failed to capture shifts in consumer behavior and market trends, which impacted the accuracy of the inflation data. The updated CPI methodology now includes a more representative basket of goods and services, improving the reliability of the inflation figures and providing policymakers with a better tool to gauge economic conditions.
Nigeria’s headline inflation rate has decreased to 24.48% year-on-year in January 2025, following the rebasing of the Consumer Price Index (CPI), according to the National Bureau of Statistics (NBS). This new rate reflects a significant reduction from the previous 34.80% in December 2024, calculated using the old methodology. The adjustment in the CPI offers a more accurate picture of the country’s current economic conditions and consumer spending patterns, making the figures more reflective of the present-day reality.
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