Latest report by the National Bureau of Statistics indicates that Nigeria’s inflation rate rose to 34.80 per cent in December 2024.
By implication, the inflation rate increase by 0.20%, from the 34.60 per cent recorded in November 2024.
According to the latest Consumer Price Index report, the marginal rise of 0.20 per cent was attributed to heightened demand for goods and services during the festive season.
On a year-on-year basis, the December inflation rate marked a significant increase of 5.87 percentage points compared to 28.92 per cent in December 2023.
This highlights a continued upward trajectory in consumer prices, driven by economic challenges such as currency depreciation, high energy costs, and persistent supply chain disruptions.
According to the NBS report, the average inflation rate for the 12 months ending December 2024 stood at 33.24 per cent, up from 24.66 per cent recorded during the same period in 2023.
The report read, “In December 2024, the headline inflation rate was 34.80 per cent relative to the November 2024 headline inflation rate of 34.60 per cent.
“Looking at the movement, the December 2024 headline inflation rate showed a marginal increase of 0.20 per cent compared to the November 2024 Headline inflation rate. This was due to December festive period increases in demand for goods and services.
“On a year-on-year basis, the headline inflation rate was 5.87 per cent higher than the rate recorded in December 2023 (28.92 per cent). This shows that the headline inflation rate (year-on-year basis) increased in December 2024 compared to the same month in the preceding year (i.e., December 2023).”
The rise reflects sustained pressures on the cost of living throughout the year, affecting both urban and rural areas.
The report highlighted that food and non-alcoholic beverages accounted for the largest share of the inflationary pressure, contributing 18.02 per cent to the overall figure.
Other key contributors included housing, water, electricity, gas, and other fuels, which added 5.82 per cent, and transport, which contributed 2.26 per cent.
Smaller contributions were noted from sectors such as health and communication, which accounted for 1.05 per cent and 0.24 per cent, respectively.
Urban inflation was higher than rural inflation during the period under review.
The urban inflation rate for December 2024 stood at 37.29 per cent on a year-on-year basis, representing a rise of 6.30 percentage points from 31.00 per cent recorded in December 2023.
On a month-on-month basis, urban inflation dropped slightly to 2.56 per cent from 2.77 per cent in November.
Rural inflation, on the other hand, rose to 32.47 per cent year-on-year, 5.37 percentage points higher than the 27.10 per cent recorded in December 2023.
However, the month-on-month rural inflation rate also experienced a marginal decline, dropping to 2.32 per cent from November’s 2.51 per cent.
The report further revealed that food inflation continued to surge, reaching 39.84 per cent on a year-on-year basis in December 2024, compared to 33.93 per cent in December 2023.
The rise was attributed to increases in the prices of staples such as yams, rice, maize, and dried fish.
Despite this, food inflation on a month-on-month basis eased slightly to 2.66 per cent from 2.98 per cent in November, driven by price reductions in items like local beer, soft drinks, and tubers.
Core inflation, which excludes volatile agricultural produce and energy, stood at 29.28 per cent year-on-year in December, up from 23.06 per cent in December 2023.
The NBS noted that the sharpest price increases were observed in transport fares, meals at local restaurants, and personal grooming services.
