- Producing Data For Informed Decision-Making
THE National Bureau of Statistics (NBS) is set to launch the Rebased Consumer Price Index (CPI) report as part of its effort to provide data for informed decision making. CPI is a number which shows movement of aggregate price level and is an important macro – economic variable of a country.
According to a statement by the Director of Communication and Public Relations, NBS, Ichedi, Sunday Joel, made available to News Point Nigeria on Monday, the last CPI Rebasing was conducted in 2009.
WHY REBASING CPI?
It is important that CPI is Rebased from time to time because consumption pattern changes and hence the need to update items in the CPI Basket. Since the last rebasing, the consumption pattern in Nigeria have changed significantly as shown by changes in the proportion of households’ expenditures on items consumed in the recently conducted Nigeria Living Standards Survey (NLSS), 2023.
A perfect example of this is the significant increase in the proportion of households’ expenditure on telecommunication compared to other items since the last rebasing of CPI. The Changes in Consumption pattern has uttered the basket of goods and services which NBS collects prices on. This means that, the current basket of goods and services needs to be updated to accommodate the new ones.
Another reason for CPI Rebasing is to bring the price reference period (Base Year) closer to the current period in other to have a relative price that shows current prices movement. In this regard, the Bureau is using 2024 as the base year for the CPI Rebasing.
BENEFIT OF CPI REBASING:
The following are the Key benefits of Consumer Price Rebasing;
It produces item weights that reflect the current consumption pattern of households
It produces up – to – date CPI Basket
Rebased CPI reflects current price volatility
It serves as an input into monetary and fiscal policy formulation
The outcome of this Rebasing can be compared with other countries CPI because international standards were followed in the process of rebasing the CPI
The Rebased CPI will serve as a veritable source of information for researchers and students of higher institutions in Nigeria and outside the country
“I would like to assure all Nigerians that the expected Rebased CPI Report will be the best of its kind and will provide further insights into the Nigerian economy”, said Prince Semiu Adeyemi, the Statistician – General and CEO of National Bureau of Statistics.
The Bureau will be launching the Rebased CPI by the end of January 2025, after which the full details of the report will be made available to the public.
