Inflation Eases as CPI Drops to 127.4 in January, Rate Slows to 15.1%

Nigeria’s inflationary pressures showed signs of moderation in January as the Consumer Price Index (CPI) declined to 127.4, while the headline inflation rate slowed to 15.1%, according to the latest data released by the national statistics authorities.

The figures indicate a marginal easing compared to previous months, offering cautious optimism for households and businesses grappling with elevated living costs. Analysts attribute the slowdown to relative stability in food prices, improved supply conditions, and base effects from earlier price surges.

Economic observers say the development may signal the early impact of recent monetary tightening measures by the Central Bank, alongside government interventions aimed at enhancing agricultural output and easing logistics bottlenecks.

Food inflation, which has been a major driver of overall price increases, recorded a softer pace, reflecting better harvest yields and stabilisation in transportation costs. Core inflation also edged down, suggesting reduced pressure from non-food items such as housing, utilities, and consumer goods.

Experts warn, however, that inflation risks remain, citing exchange rate volatility, energy costs, and structural supply constraints. “The moderation is encouraging but fragile,” said one economist, noting that sustained progress would require deeper reforms in productivity and infrastructure.

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For consumers, the slowdown offers some relief, though many Nigerians say prices remain significantly higher than a year ago. Traders and retailers report slower price adjustments but emphasise that cost pressures have not fully dissipated.

Policy analysts say lower inflation could create space for improved consumer spending and business planning if the trend continues. They stress the importance of coordinated fiscal and monetary policies to anchor price stability.

Financial markets reacted positively to the data, with investors expressing hope that easing inflation may reduce uncertainty and support growth prospects. Still, some caution that inflation must fall further before interest rate adjustments become likely.

The government has reiterated its commitment to tackling inflation through targeted subsidies, food security programmes, and investments in domestic production. Authorities also highlight ongoing efforts to stabilise the currency and reduce import dependence.

As Nigeria navigates a complex economic landscape, the January inflation figures provide a measure of optimism, though experts emphasise vigilance. Future inflation outcomes, they say, will hinge on policy consistency, global commodity prices, and domestic supply dynamics.