January 13, (THEWILL) — The National Bureau of Statistics (NBS) has indicated plans to “normalise” Nigeria’s December inflation data to account for seasonal distortions that typically cause a spike in consumer prices at year-end.
According to the statistics agency, inflation readings in December are often elevated due to seasonal factors such as increased consumer spending during the festive period, higher transportation costs, and supply pressures on food and energy items. These temporary effects, the NBS said, can exaggerate underlying price trends if left unadjusted.
The planned normalisation is intended to provide a clearer picture of Nigeria’s core inflation dynamics and help policymakers, investors and analysts better assess price movements beyond short-term seasonal pressures.
Officials explained that adjusting for seasonality aligns with international best practices in inflation measurement and supports more accurate economic analysis. The process does not alter actual price data but re-weights and smooths the impact of temporary shocks that are unlikely to persist into the new year.
The move comes amid heightened focus on inflation trends, as monetary authorities and market participants closely track price developments to gauge the direction of interest rates and broader macroeconomic stability.
Analysts say clearer inflation signals could improve policy communication, support investor confidence and enhance decision-making across financial markets, particularly as Nigeria navigates ongoing reforms and tightening financial conditions.
Ogochukwu Onwaeze
