Here’s what’s inside this article:
- The Big Reveal: Inflation rate for January 2025.
- Behind the Numbers: What the Statistician-General is saying.
- What’s Changed?: New methods for calculating the numbers.
- Reality Check: Are prices really dropping for the average Nigerian?
Inflation Rate Drops – But What Does It Mean?
According to the NBS, the headline inflation rate cooled down to 24.48% in January 2025. That’s a noticeable drop from December 2024’s scorching 34.80%. The announcement came straight from the Statistician-General (S-G) of the Federation, Adeyemi Adeniran, during a briefing in Abuja.
Why the Change? The CPI Rebasing Explained
Now, here’s the gist: the NBS rebased the Consumer Price Index (CPI). Think of it like updating your phone’s operating system. The CPI, which tracks price changes, gets a makeover every few years to reflect what people are actually buying. Nigeria hadn’t done this since 2009, so this update was long overdue!
Adeniran stressed that this rebasing is crucial. Why? Because what Nigerians were spending money on in 2009 is totally different from today. We’ve got new sectors popping up, and our shopping habits have changed drastically. This rebasing aims to make sure our economic numbers are actually on point.
The Numbers Breakdown: Food, Core, Urban, and Rural
Let’s break it down further:
- Headline Inflation: 24.48% (driven by Food, Restaurants, Accommodation, and Transport).
- Food Inflation: 26.08%.
- Core Inflation: 22.59% (excludes farm produce and energy).
- Urban Inflation: 26.09%.
- Rural Inflation: 22.15%.
Hold On! Are Things Actually Cheaper?
Now, before you start celebrating, Adeniran dropped a truth bomb: these numbers don’t mean prices are suddenly lower in the market. What it *does* mean is that the *rate* at which prices are increasing has slowed down. It’s like saying your car is still moving, but it’s not accelerating as fast as before.
The S-G reassured everyone that the government’s still pushing policies to fight inflation, ensure food availability, and boost citizens’ buying power. But let’s be real – are these policies truly hitting the mark?
What’s New in the CPI Calculation?
The NBS made some tweaks to how they calculate the CPI:
- New Classification: They’re now using the 2018 version of the Classification of Individual Consumption According to Purpose (COICOP). This includes 13 divisions instead of 12, now factoring in household spending on Insurance and Financial Services.
- Exclusions: Own-production, imputed rents, and gifted items are out of the equation. The CPI is all about *monetary* spending.
- Meals Away From Home: These expenses are now categorized more accurately.
The Bottom Line: Proceed With Caution
So, what’s the takeaway? Nigeria’s inflation rate might be slowing down on paper, but the real test is whether it translates to actual relief for everyday Nigerians. Keep your eyes on the market, and don’t get fooled by the numbers alone.
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