Nigeria’s headline inflation rate rose to 34.80% in December 2024, up from 34.60% in November, according to a report by the National Bureau of Statistics on Wednesday.
This 0.20% increase is attributed to the higher demand for goods and services during the festive season.
Compared to December 2023, Nigeria’s inflation rate increased by 5.87 percentage points, rising from 28.92% to 34.80%.
Despite this significant year-on-year surge, the month-on-month inflation rate showed a slight decline, falling to 2.44% in December 2024, down from 2.64% in November.
The report indicates that the average Consumer Price Index for the twelve months ending December 2024 increased by 33.24%, which represents an 8.58 percentage point rise from the 24.66% recorded during the same period in 2023.
The NBS reported that urban areas in Nigeria experienced an inflation rate of 37.29% in December 2024, reflecting a year-on-year increase of 6.30 percentage points from 31.00% in December 2023.
Also, rural inflation reached 32.47% during the same period, marking a 5.37 percentage point rise compared to the 27.10% recorded in December 2023.
The high demand for goods and services during the festive period contributed to the overall rise in prices, while the slight month-on-month decline indicates a potential easing in inflationary pressure.
However, the year-on-year figures highlight the ongoing economic challenges in Nigeria, with rising living costs impacting both urban and rural households.
Analysts argue that the inflation trends emphasize the need for strong monetary and fiscal policies to stabilize prices and tackle the underlying factors driving inflation in Nigeria.
