Nigeria’s inflation rate surged to 34.8% in December 2024, fueled by heightened demand during the festive period, according to the National Bureau of Statistics (NBS). The slight increase from November’s rate of 34.6% highlights persistent inflationary pressures in the country.
The NBS revealed this data in its latest Consumer Price Index (CPI) report, which measures the rate of price changes for goods and services.
The report attributed the December rise to increased spending during the Yuletide season, a period typically marked by higher consumption and demand.
Year-on-year, the headline inflation rate in December 2024 was 5.87% higher than the 28.92% recorded in December 2023. This upward trend underscores the continued struggle to rein in inflationary pressures over the past year.
Food inflation also played a significant role in the overall increase.
In December 2024, food inflation stood at 39.84% year-on-year, up from 33.93% in December 2023. The price hikes were driven by staples such as yam, water yam, sweet potatoes, rice, maize, bread, cereals, and fish, among others.
The economic strain has been compounded by what many describe as the worst cost-of-living crisis since Nigeria gained independence more than six decades ago.
The soaring inflation rate reflects the impact of key policy decisions made under President Bola Tinubu’s administration.
When Tinubu assumed office in May 2023, Nigeria’s inflation rate was 22.41%.
However, his government’s policies, including the removal of petrol subsidies and the unification of forex rates, have been cited as major contributors to the inflation surge, which now stands more than 12% higher.
In December 2024, while presenting a ₦49.7 trillion budget proposal to the National Assembly, Tinubu expressed a goal to reduce the inflation rate to 15% by 2025. Economists, however, have described this target as overly ambitious given the current trajectory.
As Nigerians grapple with escalating prices, the challenge remains for policymakers to stabilize the economy and provide relief to citizens facing rising costs of essential goods and services.
