Nigeria's inflation rate experienced a decline in February 2025, according to the National Bureau of Statistics (NBS). The headline inflation rate eased to 23.18 percent, a decrease from the 24.48 percent reported in January 2025. This marginal decrease of 1.30% points offers a glimmer of hope amidst concerns about the rising cost of living.

On a year-on-year basis, the headline inflation rate was 8.52% lower than the rate recorded in February 2024 (31.70%). However, it's crucial to note that these figures are calculated using different base years, with the current base year set at November 2009 = 100. Month-on-month, the headline inflation rate in February 2025 stood at 2.04%.

Food inflation, a major driver of overall inflation, also saw a decrease. The food inflation rate in February 2025 was 23.51 percent year-on-year, down from 26.08 percent in January. Notably, this figure is significantly lower (14.41%) than the 37.92 percent reported in February 2024. The NBS attributes a portion of this decline to the change in the base year used for calculation following the recent rebasing of CPI from 2009 to 2024, emphasizing a need for careful interpretation. On a month-on-month basis, the food inflation rate in February 2025 was 1.67%.

The NBS indicated that compared to January 2025, average prices of certain food items experienced a decline. These items include yam tubers, potatoes, soya beans, flour of maize/cornmeal, cassava, and dried bambara beans.

Analyzing food inflation across different states reveals considerable variation. Edo State recorded the highest food inflation on a year-on-year basis at 33.59 percent, followed by Enugu (30.72 percent) and Sokoto (30.19 percent). In contrast, Kaduna (15.45 percent), Akwa-Ibom (15.53 percent), and Plateau (15.74 percent) experienced the slowest rise in food inflation year-on-year.

Examining month-on-month figures, Sokoto recorded the highest food inflation at 11.98 percent, followed by Kogi (11.38 percent) and Edo (8.87 percent). Interestingly, Kaduna (-8.83 percent), Ondo (-4.78 percent), and Plateau (-3.73 percent) experienced a decline in food inflation on a month-on-month basis.

Core inflation, excluding volatile agricultural produce and energy prices, decreased by 2.12% year-on-year, reaching 23.01% in February 2025 compared to 25.13% in February 2024. Month-on-month, the core index stood at 2.52% in February.

The average 12-month annual inflation rate for the period ending February 2025 was 25.33%, higher than the 21.72% recorded in February 2024, showing an upward trend when considering the broader timeframe.