Nigeria’s inflation rate climbed to 34.80% in December 2024, marking a slight increase of 0.20 percentage points from November’s 34.60%, according to the latest National Bureau of Statistics (NBS) report.
The rise, attributed to heightened festive season demand, highlights ongoing economic challenges, including currency depreciation, high energy costs, and supply chain disruptions. On a year-on-year basis, December’s inflation rate was 5.87 percentage points higher than the 28.92% recorded in December 2023.
The average inflation rate for the 12 months ending December 2024 stood at 33.24%, significantly exceeding the 24.66% recorded in 2023. Food and non-alcoholic beverages contributed the most to inflation at 18.02%, followed by housing, water, electricity, gas, and other fuels at 5.82%, and transport at 2.26%.
Urban areas experienced higher inflation rates, with a year-on-year increase to 37.29% in December, while rural inflation rose to 32.47%. Food inflation surged to 39.84% year-on-year, driven by price hikes in staples like yams, rice, and maize, though month-on-month food inflation eased slightly to 2.66%.
Core inflation, excluding volatile agricultural produce and energy, reached 29.28% year-on-year in December, with notable increases in transport fares, meals at restaurants, and personal grooming services.
The NBS report underscores persistent cost-of-living pressures, reflecting the broader economic challenges faced by Nigerians throughout 2024.
