Nigeria’s headline inflation has dropped to 24.48% year on year in January 2025,  a huge decline from the 34.80% headline inflation recorded in December 2024, according to data released by the National Bureau of Statistics (NBS). This was due largely to the rebasing formula adopted by the NBS.

The Statistician-General of the Federation Adeyemi Adeniran said on Tuesday that the Consumer Price Index (CPI) –  which measures the rate of change in prices of goods and commodities –  has declined to 24.48% year on year in January.

Adeniran announced this during a briefing in Abuja, stressing that urban inflation stood at 26.09 per cent while rural inflation came to 22.15%.

He said that the general prices of goods and services in the country declined, compared to the 34.80% in December, which used the old template. According to him, the rebasing used in 2025 was to keep up with international standards.

CPI rebasing means changing the basket of goods and services used to measure inflation to better reflect current consumer spending patterns and ensure the inflation data reflects the economy’s current. This is the acceptable global standard to adjust to the dynamics of the economy.

According to the CPI figures for the period under review, the rebased food inflation stood at 26.08% year-on-year in January, representing a decline in the food index when compared with 39.84% year-on-year recorded in the preceding month.

In the same vein, the rebased core index which excludes the prices of volatile agricultural produce and energy stood at 22.59% year on year in January.

According to the NBS, the rebased CPI reflects the current inflationary pressure and consumption pattern of people living in the country.