Nigeria’s Food Inflation Drops to 23.51% in February 2025 as Price Pressures Ease
Nigeria’s food inflation rate fell to 23.51% in February 2025, down from 37.92% the previous year. Month-on-month inflation was 1.67%, indicating a slower rate of food price increases. Regional disparities in food inflation were observed, with significant differences across states. Despite the easing inflation, food prices continue to play a major role in the overall inflation rate.
In February 2025, Nigeria’s food inflation rate decreased to 23.51%, a substantial drop from 37.92% in February 2024. This change, as reported by the National Bureau of Statistics (NBS), signifies a moderation in food price increases, despite ongoing monthly price growth. The notable decline in year-on-year food inflation is partially attributed to a change in the baseline measurement.
On a month-to-month basis, food inflation registered at 1.67%, indicating a slower rate of price escalation compared to January 2025. This suggests that food prices continue to rise, but the pace of that increase has lessened markedly, providing a glimmer of hope for consumers.
The NBS report identifies several key factors driving this decline in food inflation. In February, staple food items such as yam tubers and potatoes recorded lower price increases than in previous months. This trend may indicate improvements in supply conditions or reduced pressures from exchange rate fluctuations, which have historically contributed to food price instability.
Moreover, the report notes that despite the easing of inflation, food prices remain a significant contributor to overall inflation. Food and non-alcoholic beverages accounted for 9.28% of the total headline inflation rate, making them a crucial inflationary driver in Nigeria. Month-on-month, food inflation contributed 0.82% to overall inflation, reflecting continued price increases at a slower pace.
Regionally, food inflation varied significantly across Nigeria’s states, with Sokoto experiencing the highest rate at 38.34%. This was followed by Edo at 35.08% and Nasarawa at 33.53%. These higher rates were attributed to disruptions in supply chains, increased transportation costs, and seasonal agricultural challenges.
Conversely, Adamawa, Ondo, and Oyo recorded the lowest food inflation rates at 12.18%, 13.66%, and 15.55%, respectively, likely due to favorable local production conditions and less dependence on imported food. Notably, Sokoto experienced the greatest month-on-month price increase at 18.83%, while regions like Ondo, Kaduna, and Oyo showed declines.
The sharpening decline in Nigeria’s food inflation rate indicates a somewhat easing pressure on consumers, although food prices remain a primary contributor to overall inflation. The varying inflation rates across different states highlight the complex dynamics of supply and demand in the agricultural sector. Continued monitoring of price trends is essential as the country navigates its economic landscape and works towards stabilizing food costs.
Original Source: nairametrics.com
