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The National Bureau of Statistics has reported that Nigeria’s inflation rate rose to 34.80% in December 2024, reflecting a slight increase from the 34.60% recorded in November.
According to the latest Consumer Price Index report released on Wednesday, the marginal rise of 0.20% has been 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% 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%, up from 24.66% 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% 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% to the overall figure.
Other key contributors included housing, water, electricity, gas, and other fuels, which added 5.82%, and transport, which contributed 2.26^.
Smaller contributions were noted from sectors such as health and communication, which accounted for 1.05% and 0.24^, respectively.
Urban inflation was higher than rural inflation during the period under review.
The urban inflation rate for December 2024 stood at 37.29^ on a year-on-year basis, representing a rise of 6.30 percentage points from 31.00^ recorded in December 2023.
On a month-on-month basis, urban inflation dropped slightly to 2.56^ from 2.77% 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% recorded in December 2023.
However, the month-on-month rural inflation rate also experienced a marginal decline, dropping to 2.32 ^ from November’s 2.51^.
The report further revealed that food inflation continued to surge, reaching 39.84% on a year-on-year basis in December 2024, compared to 33.93% 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% from 2.98% 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% year-on-year in December, up from 23.06% in December 2023.
The NBS noted that the sharpest price increases were observed in transport fares, meals at local restaurants, and personal grooming services.
On a month-on-month basis, core inflation climbed to 2.24% in December, higher than the 1.83% recorded in November.
State-by-state analysis showed that Bauchi recorded the highest year-on-year inflation rate at 44.06%, followed by Sokoto at 42.43^ and Kebbi at 41.47%.
On the other end, Katsina, Delta, and Imo recorded the lowest inflation rates, with Katsina posting 28.33%.
For food inflation, Sokoto led the figures with a staggering 57.47% year-on-year, while Zamfara and Edo followed with 46.39% and 46.32%, respectively.
Conversely, Yobe, Kano, and Abuja recorded month-on-month declines in food inflation.
The rise in inflation, particularly during a period of high consumer spending, highlights the ongoing economic challenges facing Nigerians.
