Nigeria’s well being inflation fee eased to 17.50% in February 2025, reflecting a slowdown within the tempo of value will increase for medical items and providers.
The most recent Shopper Value Index (CPI) report launched by the Nationwide Bureau of Statistics (NBS) exhibits a big decline from 25.02% recorded in February 2024, marking a 30.08% drop in annual well being inflation.
Regardless of the moderation within the inflation fee, healthcare prices stay on the rise, with the well being index climbing to 111.1 in February 2025 from 94.6 within the earlier yr and 75.6 in February 2023.
On a month-on-month foundation, well being inflation rose by 0.12% in February 2025, indicating a slight enhance in healthcare prices in comparison with the earlier month. The well being index climbed from 109.4 in January to 111.1 in February, reflecting continued value will increase, albeit at a slower tempo.
The continued enhance within the index means that whereas value pressures are easing, the price of healthcare providers and prescription drugs continues to rise.
CPI rebasing and inflation changes
The slowdown in well being inflation comes amid Nigeria’s CPI rebasing, which has adjusted the reference base yr from 2009 to 2024 to higher replicate present shopper spending patterns and {economic} realities. One of many key adjustments within the rebased CPI is the revision of sectoral weightings, with healthcare now accounting for six.1% of the inflation basket, up from 3.0% within the earlier construction.
- The rebasing course of was designed to enhance inflation measurement by incorporating newer items and providers whereas realigning weightings based mostly on family spending patterns. Nonetheless, inconsistencies in reported inflation charges from January 2025 have raised questions on knowledge accuracy.
- The healthcare sector contributed 1.40% to year-on-year headline inflation in February 2025, reinforcing its significance in shopper spending. On a month-on-month foundation, the sector accounted for 0.12% of general inflation.
- Whereas this stays decrease than meals inflation, which contributed 9.28% year-on-year and 0.82% month-on-month, and transport, which contributed 2.47% year-on-year and 0.22% month-on-month, healthcare stays a key price part for Nigerian households.
- Regardless of the drop within the inflation fee, healthcare prices stay on the rise, and affordability stays a priority for a lot of Nigerians.
Discrepancy in NBS well being inflation knowledge
Whereas the NBS had reported in its January 2025 CPI report that well being inflation stood at 9.42%, its newest report contradicts that determine. The newly launched index figures point out that well being inflation for January 2025 was really 18.04%, based mostly on an index studying of 109.4, up from 92.7 in January 2024.
This important discrepancy within the reported inflation fee raises considerations concerning the transparency and consistency of NBS knowledge, notably because the CPI rebasing takes impact. The adjustment means that inflation within the well being sector could have been underestimated in earlier studies, highlighting the necessity for higher scrutiny of official inflation knowledge.
Total, Nigeria’s headline inflation fee fell from 24.48% in January to 23.18% in February, whereas core inflation (which excludes meals and power) declined barely from 22.59% to 23.01%. The slowdown in general inflation means that value pressures are easing throughout a number of sectors, together with healthcare.
