Nigeria’s inflation decreased to 23.18% in February 2025, primarily due to a CPI rebase and lower fuel prices. Diesel prices fell by 33% due to increased production from Dangote Refinery, while food inflation eased to 23.51%. Analysts predict potential inflation surges by April due to global pressures, with interest rates held steady at 27.5%.
In February 2025, Nigeria experienced a notable decrease in inflation, marking the first decline of the year, as it fell to 23.18% from 24.48% recorded in January, according to the National Bureau of Statistics. This reduction is attributed to a rebase of the Consumer Price Index (CPI), a decline in fuel prices, and the relative stability of the naira. Increased production from the Dangote Refinery contributed to a significant 33% decrease in diesel prices, while petrol prices remained stable.
Furthermore, food inflation showcased a slight decrease, settling at 23.51%, a reduction from January’s figure of 24.08%. Despite this temporary respite from rising prices, analysts caution that inflation rates could potentially rise again by April, mainly due to external economic pressures. In light of the recent macroeconomic developments, the country’s Monetary Policy Committee has opted to maintain the interest rates at 27.5%.
In summary, Nigeria’s inflation rate has shown a decrease, aided by steady currency value and reduced fuel prices. While February reflected slight improvements in both general and food inflation, caution remains warranted as future global economic conditions could prompt another surge in inflation. The Monetary Policy Committee’s decision to hold interest rates steady at 27.5% further reflects a measured approach amid these developments.
Original Source: iafrica.com
