LCCI urges authorities to prioritize fiscal self-discipline as inflation drop to 24.48%
The Lagos Chamber of Commerce and Business (LCCI) has referred to as on the federal government to prioritize fiscal self-discipline as a vital technique to make sure a continued decline in inflation.
This attraction was made by the Director-Normal of LCCI, Dr. Chinyere Almona in response to the January inflation price of 24.48 %.
Nigeria’s inflation price dropped to 24.48 % in January 2025, following the rebasing of the Client Worth Index (CPI).
Dr. Almona additionally urged the Central {Bank} of Nigeria (CBN) to fine-tune financial insurance policies to strike a stability between curbing inflation and sustaining {economic} progress.
She emphasised the necessity for focused interventions to deal with inflationary pressures and enhance {economic} stability, regardless of the rebased January inflation price. Dr. Almona famous that the sharp drop within the inflation price from 34.8 % to 24.48 % was primarily because of the rebasing of the CPI.
“A rebased inflation price doesn’t resolve the rising value of dwelling,” she mentioned.
Inflation price
In line with Dr. Almona, regardless of the decrease rebased price, inflation stays excessive, which means costs are nonetheless rising, simply at a slower tempo. She highlighted {that a} decrease inflation price may seem optimistic, but it surely doesn’t routinely enhance dwelling requirements.
“For many Nigerians, important prices like meals and transportation stay excessive, which means dwelling circumstances won’t enhance until there’s a actual discount in the price of requirements. Whereas the rebased inflation price offers policymakers with a clearer view of {economic} traits, it doesn’t resolve the rising value of dwelling. The federal government should implement focused interventions to deal with inflationary pressures and enhance {economic} stability,” she acknowledged.
Dr. Almona recognized meals inflation as a key precedence to deal with, accounting for over 50 % of value will increase. She emphasised that insurance policies ought to concentrate on boosting agricultural productiveness, decreasing post-harvest losses, and bettering transportation and storage infrastructure to make sure meals affordability.
She additionally burdened the significance of stabilizing the alternate price and inspired native production and lowered reliance on imports to assist strengthen the foreign money and management value surges.
What you need to know
In line with Nairametrics, Nigeria’s headline inflation price dropped to 24.48 % year-on-year in January 2025, following the rebasing of the CPI, as reported by the Nationwide Bureau of Statistics (NBS).
- The report highlights a decline within the normal value stage of products and companies in comparison with 34.80 % in December 2024, calculated utilizing the earlier methodology.
- The most recent NBS report indicated that city inflation stood at 26.09 %, whereas rural inflation was recorded at 22.15 %.
- The rebased meals inflation index stood at 26.08 % year-on-year in January 2025, indicating a decline from the 39.84 % recorded in December 2024 underneath the outdated methodology.
The meals inflation index measures the value motion of important meals gadgets, which represent a good portion of family expenditures in Nigeria. Equally, the core inflation price, which excludes risky agricultural produce and power costs, stood at 22.59 % year-on-year in January.
