The Lagos Chamber of Commerce and Industry (LCCI) has noted that the rebasing of Nigeria’s inflation rate from 34.8% to 24.48% is not a solution to the increasing prices of goods and services nor an indication of drop in prices but a revised way of calculating inflation.
The Chamber reiterate that the rebasing is simply a change in measurement rather than a real drop in prices.
According to LCCI, rebasing is a routine statistical exercise designed to provide a more accurate and current snapshot of an economy. It reflects structural changes, accounts for inflation, and incorporates emerging sectors.
Rebasing typically updates the weight of different goods and services in the inflation basket to better reflect current consumption patterns.
“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 chamber said in a statement noting that 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,” LCCI said.
The chamber added that while the rebased inflation rate provides policymakers with a clearer view of economic trends, it does not resolve the rising cost of living.
Based on the new inflation report, the LCCI urged the government to adjust economic policies by tackling food inflation, which accounts for over 50 percent of price increases.
“Policies should focus on boosting agricultural productivity, reducing post-harvest losses, and improving transportation and storage infrastructure to ensure food affordability.
“Encouraging local production and reducing reliance on imports can help strengthen the currency and control price surges,” the chamber said while noting that fiscal discipline is also essential, as excessive government borrowing and deficit spending contribute to inflation.
