Imo State has become Nigeria’s most expensive state to live in, following CPI rebasing by the NBS.
This shift dethroned Bauchi, which led Nigeria’s inflation rankings for seven months, marking a major change.
The NBS updated its methodology, adjusting the base year to 2024 and expanding the consumer spending basket.
Major Upset in Inflation Rankings, following the rebasing of the Consumer Price Index (CPI) by the National Bureau of Statistics (NBS)
Previously, Bauchi held Nigeria’s highest living costs since May 2024 after overtaking Kogi.
However, the rebased CPI now shows Imo leading with a 17.77% inflation rate in January 2025.
Before rebasing, Imo ranked 35th, making this jump one of Nigeria’s most significant inflationary shifts.
Imo’s food inflation reached 16.80%, highlighting steep food costs compared to Bauchi’s reduced 12.79%.
Bauchi’s all-item inflation fell dramatically from 44.06% in December 2024 to 10.06% in January 2025.
Why Imo Climbed to the Top
The rebased CPI now includes more diverse goods and services, reflecting Nigeria’s evolving consumption patterns.
Previously, food inflation dominated, heavily influencing Bauchi’s top position for consecutive months.
Now, rising housing, transportation, and service costs in urban states like Imo drive inflation rankings.
What CPI Rebasing Means
The rebasing aims to track inflation more accurately, reflecting current spending patterns and updated price data.
Food’s influence in the CPI dropped from 50% to 40%, offering a broader inflationary perspective.
Product varieties increased from 740 to 934 items, capturing more comprehensive service expenditures.
Additionally, switching from the Dutot index to Jevon index improved real price shift measurements.
This change better reflects variations between product categories and aligns Nigeria’s data with global standards.
Impact on Inflation Rates
Nigeria’s headline inflation fell to 24.48% in January 2025, down from 34.80% in December 2024.
Urban inflation now stands at 26.09%, while rural inflation is recorded at 22.15% nationally.
Food inflation also declined to 26.08% year-on-year, compared to 39.84% under the previous methodology.
Despite lower reported inflation, cost-of-living pressures persist in Imo, Ebonyi, and similarly ranked states.
The rebased CPI provides a clearer inflation picture, shifting focus from food prices to broader expenses.
