Nigeria’s urban centres are experiencing higher inflation rates than rural areas following the rebasing of the Consumer Price Index (CPI), the National Bureau of Statistics (NBS) has revealed.

According to the NBS report, urban inflation stood at 26.09 per cent, while rural inflation was recorded at 22.15 per cent in January 2025.

The gap shows the rising cost of living in major cities, with sectors such as housing, transportation, and restaurant services experiencing sharper price increases.

“This means that the general prices of goods and services in Nigeria increased by 24.48 per cent compared to January 2024,” the NBS noted.

The rebased CPI now uses 2024 as the base year instead of 2009, updating consumer spending patterns and incorporating a wider range of products.

The revised inflation tracking structure now covers 934 product varieties, classified under 13 expenditure divisions, including food and non-alcoholic beverages, clothing, transport, housing, health, and education. While food inflation remains significant at 10.64 per cent, alcoholic beverages, tobacco, and narcotics recorded the highest increase at 14.80 per cent.

The NBS also noted shifts in regional inflation rankings. Imo State has now become the most expensive state to live in, overtaking Bauchi, which had held the position for seven consecutive months.

The Statistician-General of the Federation, Semiu Adeyemi, said the rebasing was necessary to reflect Nigeria’s changing economic landscape.

“Rebasing our GDP and CPI allows us to align with these transformations, providing a more precise and relevant picture of Nigeria’s economic landscape,” he said.

The NBS has also introduced fully digitised data collection to improve inflation tracking.

“We have replaced paper-based surveys with computer-assisted personal interviewing devices, allowing real-time transmission and verification of price data,” the report stated.