- Nigeria's inflation rate rises to 34.80% in December 2024, driven by seasonal demand and economic pressures
- Food inflation surges to 39.84%, highlighting the rising cost of staples like rice and yams
- Regional inflation disparities show Bauchi with the highest rate at 44.06%, while Katsina records the lowest at 28.33%
The National Bureau of Statistics (NBS) has revealed that Nigeria’s inflation rate reached 34.80% in December 2024, marking a slight increase from 34.60% in November. This increase, though marginal at 0.20%, is attributed to the seasonal surge in demand for goods and services during the festive period.
The NBS’s latest Consumer Price Index (CPI) report, published on Wednesday, January 15, also shows a notable rise when compared to the same month in 2023. December's inflation rate was 5.87 percentage points higher than the 28.92% recorded in December 2023, indicating continued upward pressure on consumer prices.
This persistent inflation is driven by a combination of economic challenges, including currency depreciation, high energy costs, and ongoing supply chain disruptions.
The report further revealed that the average inflation rate for the 12 months ending December 2024 stood at 33.24%, up from 24.66% in the same period of the previous year.
"In December 2024, the headline inflation rate was 34.80%, relative to the November 2024 headline inflation rate of 34.60%. The marginal increase of 0.20% was largely driven by the higher demand for goods and services during the December festive period," the report explained.
On a year-on-year basis, the inflation rate in December 2024 was significantly higher than the previous year, reflecting a continued strain on consumers. The rise in inflation is felt across both urban and rural areas, with food and non-alcoholic beverages contributing the most to the overall inflationary pressure, at 18.02%.
Other notable contributors to the inflation rate include housing, water, electricity, gas, and other fuels (5.82%), as well as transport (2.26%). Sectors such as health and communication showed smaller contributions of 1.05% and 0.24%, respectively.
Urban areas continue to face a higher inflation rate than rural areas. In December 2024, the urban inflation rate stood at 37.29%, reflecting an increase of 6.30 percentage points from 31.00% in December 2023. Urban inflation eased slightly on a month-on-month basis, dropping from 2.77% in November to 2.56% in December.
In contrast, rural inflation rose to 32.47% year-on-year, an increase of 5.37 percentage points from the 27.10% recorded in December 2023. However, rural inflation experienced a slight month-on-month decline, falling from 2.51% in November to 2.32% in December.
Food inflation remains a significant concern. The report noted a sharp rise in food inflation, which reached 39.84% year-on-year in December 2024, compared to 33.93% in December 2023. This surge in food prices is largely attributed to rising costs of staples like yams, rice, maize, and dried fish.
However, food inflation eased slightly on a month-on-month basis, dropping from 2.98% in November to 2.66% in December, driven by price reductions in items such as local beer, soft drinks, and tubers.
Core inflation, which excludes volatile items like agricultural produce and energy, also saw an increase, rising to 29.28% year-on-year in December 2024 from 23.06% in December 2023. On a month-on-month basis, core inflation climbed to 2.24%, up from 1.83% in November.
The state-by-state breakdown of inflation rates showed significant regional variations. Bauchi recorded the highest year-on-year inflation rate at 44.06%, followed by Sokoto at 42.43% and Kebbi at 41.47%.
At the other end of the spectrum, Katsina, Delta, and Imo states had the lowest inflation rates, with Katsina posting 28.33%.
Sokoto led the states in food inflation, with a staggering 57.47% year-on-year increase, while Zamfara and Edo followed with food inflation rates of 46.39% and 46.32%, respectively. In contrast, Yobe, Kano, and Abuja recorded month-on-month declines in food inflation.
This persistent rise in inflation, particularly during a period of increased consumer spending, underscores the ongoing economic difficulties faced by many Nigerians.
The government and policymakers are under increasing pressure to address the root causes of inflation and to mitigate the impact on the cost of living for citizens across the country.
Inflation: Nigerians to spend 54.9% income on food in next 6 months, projects CBN
Meanwhile, TheRadar reported that a recent survey by the Central Bank of Nigeria (CBN) showed that the escalating inflation rate in Nigeria is expected to lead households to dedicate the largest portion of their earnings to food expenses over the next six months.
The survey, conducted from July 22 to 26, 2024, reveals that the inflation rate has surged to 33.40 per cent, with food inflation exceeding 40 per cent. The data, which was derived from a sample of 1,665 households across the 36 states and the Federal Capital Territory, shows a significant shift in consumer spending patterns due to the economic pressures.
