Nigeria Alters Inflation Calculation to Address Distortions

Nigeria's National Bureau of Statistics (NBS) has announced a significant change to its inflation calculation methodology to address distortions caused by the recent rebasing of its index reference point to December 2024. This marks the first such rebasing in 15 years, with the previous adjustment occurring in 2009. The agency clarified that the projected 30% inflation figure for December is an artificial spike resulting from the base effect of rebasing, rather than a reflection of actual price trends.

The NBS will implement a 12-month reference period for 2024 data, replacing the traditional one-month approach, to provide a more accurate picture of true inflation trends. This adjustment comes as analysts predict headline inflation could rise to 30% in December from 14.45% year-on-year in November. The current spike is attributed to the methodological change, rather than genuine market conditions.