The National Bureau of Statistics (NBS) on Wednesday released its December 2024 Consumer Price Index (CPI) report, shedding light on the price changes affecting goods and services across Nigeria. This critical economic tool monitors inflation and provides insights into economic trends nationwide.
According to the NBS, “The CPI process combines economic theory, sampling, and statistical techniques to calculate average price variations across the economy.” The index is based on data from the 2003/2004 Nigeria Living Standard Survey (NLSS), ensuring consistency with past indices while maintaining accuracy.
The CPI is derived from a representative market basket containing 740 goods and services, with prices collected monthly from over 10,500 informants in urban and rural areas across Nigeria’s 36 states and the Federal Capital Territory (FCT). The report emphasized the importance of precision, stating, “Precision in construction is vital,” and highlighted the multidisciplinary team’s role in the process, including economists, statisticians, and data collectors.
Using the Laspeyres formula, the NBS aggregates price changes relative to a base year, with weights sourced from the NLSS. The index is categorized into 85 classes, 48 groups, and 12 divisions, offering insights into urban, rural, and composite inflation trends.
A key addition to the December 2024 CPI report is the Imported Food Index, which tracks the influence of international markets on local consumption. The NBS noted, “This addition enhances the depth of the analysis and provides more nuanced insights into price movements.”
The urban and rural indices are weighted by the national population ratio, with 45.5% for urban areas and 54.5% for rural areas, ensuring a comprehensive reflection of Nigeria’s diverse consumption patterns.
For further details, the NBS encourages the public to visit its official website to explore the full report and its implications for the Nigerian economy.
