The National Bureau of Statistics (NBS) has announced a further reduction in the country’s inflation rate, dropping to 23.2% in February 2025 from 24.48% in January 2025.
This marks the second consecutive month of decline since the consumer price index (CPI) was rebased earlier this year.
The inflation rate fell from 34.8% recorded in December 2024. However, despite this downward trend in the headline inflation figure, Nigerians across the country have continued to lament what they described as a high cost of living, raising questions about the real-world impact of these economic metrics.
Amidst the questions, the NBS, in its monthly report released on Monday, attributed the decline in the inflation rate to a slowdown in the rate of price increases across several key sectors, including energy, transportation, and some food items.
The NBS also explained that the rebasing of the CPI, which updated the basket of goods and services used to measure inflation and shifted the base year from 2009 to 2024, provided a more accurate reflection of current consumption patterns.
According to the NBS, the rebasing exercise expanded data collection efforts to include a broader range of states, local government areas, and rural communities, aiming to capture structural economic changes more precisely.
Reacting to the development, economists and citizens have pointed to several structural and policy-related factors that explain the disconnect between the falling inflation rate and the persistent cost of living crisis.
Taiwo Odugbemi, a Lagos-based economist, explained that the drop in the inflation rate represents disinflation, a slowing in the rate of price increases, rather than deflation, where prices would decrease.
He stated: “The prices of goods and services are still rising, just at a slower pace than before. For the average Nigerian, this distinction offers little comfort when a basket of groceries still costs more than it did last month.”
Also, a lady identified as Chioma Eze, who took to her X(formerly Twitter) account, said: “The government keeps talking about inflation dropping, but I don’t see it in the market.
“Everything I buy, food, fuel, even school fees, is more expensive than last year. So what’s the point of these numbers?”
“Inflation down to 23.2% but my rent just went up by 30%, and I can’t afford to eat three meals a day. Who is this good news for?” wrote @TundeOnTheMove on X.
Another X user, @MamaNgozi, tweeted, “These numbers are just for politicians to pat themselves on the back. In the real Nigeria, we are suffering.”
