Nigeria’s recent rebasing of the Consumer Price Index (CPI) introduced several new items and special indices aimed at providing a more accurate reflection of current economic conditions.
Key additions include:
Farm Produce Index: This index accounts for 10.50% of the inflation measurement, focusing on agricultural outputs.
Energy Index: Reflecting energy costs, this index has a weight of 8.9%.
Services Index: This category includes various services and has a weight of 10.41%.
Goods Index: This index, which encompasses various consumer goods, holds a weight of 10.79%.
Imported Food Index: This index measures inflation related to imported food items and stands at 11.47%134.
The rebasing process also expanded the overall basket of goods from 740 to 960 items, enhancing the CPI’s ability to capture changes in consumer spending patterns.
Notably, the weight of food in the inflation basket was reduced from 51.8% to 40.1%, while sectors like health and transport gained increased representation.
