Rebased inflation rate doesn’t reflect actual drop in prices – LCCI

The Lagos Chamber of Commerce and Industry (LCCI) has said that the drop in inflation rate for January as reported by the National Bureau of Statistics (NBS) is only a reflection of different measurement and not an actual drop in prices.

In a statement on Tuesday, Director General of LCCI, Dr Chinyere Almona, stated: “The drop in inflation from 34.8% to 24.48% does not indicate a sharp fall in prices but a revised way of calculating inflation. Despite the lower reported rate, inflation remains high, meaning prices are still rising, just at a slower pace.

“A lower inflation rate may seem positive, but it does not automatically improve living standards. Prices are still rising, wages remain stagnant, and unemployment is high, keeping real incomes under pressure. 

“The rebased inflation rate only reflects a different measurement, not an actual drop in prices. For most Nigerians, essential costs like food and transportation remain high, meaning living conditions will not improve unless there is a real reduction in the cost of necessities.”

She noted that while the rebased inflation rate provides policymakers with a clearer view of economic trends, it does not resolve the rising cost of living. 

“The government must implement targeted interventions to address inflationary pressures and improve economic stability.

“One key priority is tackling food inflation, which accounts for over 50% of price increases. Policies should focus on boosting agricultural productivity, reducing post-harvest losses, and improving transportation and storage infrastructure to ensure food affordability,” Almona added.