High price persist despite Inflation drops to 24.48% in January 2025 – CPPE warns

By Seun Ibiyemi

The Centre for the Promotion of Private Enterprise (CPPE) has commented on the sharp decline in Nigeria’s inflation rate, cautioning that while the figures show a significant drop, the cost of living remains a major concern.

According to CPPE, headline inflation fell from 34.8% in December 2024 to 24.48% in January 2025. Food inflation also dropped from 39.8% to 26.08%, while core inflation declined from 29.28% to 22.59%.

The organization attributed this shift primarily to the change in the computation base year from 2009 to 2024, as well as the natural slowdown in spending after the festive season.

Despite the positive inflation numbers, CPPE’s Director/CEO, Muda Yusuf, emphasized that a lower inflation rate does not mean a reduction in prices. Instead, it reflects a slower rate of price increases. High costs of energy, imports, transportation, and insecurity continue to strain businesses and households.

However, Yusuf noted early signs of relief, citing slight reductions in the prices of petroleum products, certain food items, and pharmaceuticals.

He expressed hope that this trend would continue throughout 2025, leading to meaningful disinflation.

The CPPE urged the government to intensify efforts to address key cost drivers, ensuring that Nigerians feel real economic relief beyond statistical improvements.