In February 2025, Nigeria’s inflation rate fell to 23.18% from 24.48% in January, aided by reductions in fuel prices and a stable naira. This decline follows changes to the Consumer Price Index and is partially due to increased diesel output from the Dangote Refinery. However, analysts warn of potential inflation surges in coming months, while interest rates remain unchanged at 27.5%.
Nigeria’s inflation rate has shown a significant decrease for the first time in 2025, decreasing from 24.48% in January to 23.18% in February, as reported by the National Bureau of Statistics. This decline is attributed to a rebase of the Consumer Price Index (CPI), reduced fuel costs, and a relatively stable value of the naira.
The increase in production from the Dangote Refinery has contributed to a 33% reduction in diesel prices, while petrol costs have remained stable. Additionally, food inflation has experienced a slight decline, decreasing from 24.08% in January to 23.51% in February.
Although this decrease provides temporary relief, experts caution that inflation could rise again by April, potentially influenced by global economic conditions. Furthermore, the Monetary Policy Committee has maintained the interest rate at 27.5% in light of recent economic assessments.
Overall, the recent changes in Nigeria’s inflation indicate a promising but precarious economic environment. The decrease in inflation rates, along with lower fuel prices, offers some respite to consumers. However, concerns remain about potential future inflationary pressures, prompting the necessity for vigilance and sound economic policy measures going forward.
Original Source: www.africa.com
