Nigeria's inflation rate continued its upward trajectory in December 2024, reaching 34.8% from 34.6% in November, according to data released by the National Bureau of Statistics (NBS). This marks the fourth consecutive monthly increase since September 2024, further intensifying the nation's cost of living challenges.

Key Findings

The headline inflation rate saw a marginal increase of 0.20 percentage points compared to November, primarily driven by heightened demand during the festive period. On a year-over-year basis, this represents a significant 5.87 percentage point increase from December 2023's rate of 28.92%.

Food Inflation Shows Mixed Signals

Food inflation recorded a slight decline to 39.84% in December, down from November's figure. The increase in food prices was particularly notable in:

- Root vegetables (yam, water yam, sweet potatoes)

- Beverages, including beer

- Cereals (guinea corn, maize, rice)

- Fish products (dried sardines, catfish)

Regional Variations

The impact of inflation showed significant regional disparities across Nigerian states:

Highest Food Inflation (Year-on-Year):

- Sokoto: 57.47%

- Zamfara: 46.39%

- Edo: 46.32%

Lowest Food Inflation (Year-on-Year):

- Ogun: 34.24%

- Rivers: 35.43%

- Kwara: 35.58%

Monthly Trends

On a month-to-month basis, the headline inflation rate showed some improvement, decreasing to 2.44% in December from 2.64% in November. This suggests a slight moderation in the pace of price increases, though the overall trend remains concerning.

Historical Context

The current inflationary pressure can be traced back to significant policy changes in 2023, including:

- The devaluation of the naira

- Removal of fuel subsidies

- Multiple interest rate hikes by the central bank

The twelve-month average inflation rate through December 2024 stood at 33.24%, representing an 8.58 percentage point increase from the previous year's average of 24.66%.