The latest report from the National Bureau of Statistics (NBS) reveals that Nigeria’s Headline Inflation Rate climbed to 34.80% in December 2024, a slight increase from November’s 34.60%. The uptick is largely attributed to heightened demand for goods and services during the festive season.
Headline inflation rose to 34.80% in December 2024, marking a year-on-year increase of 5.87% from 28.92% in December 2023. On a month-on-month basis, however, inflation slowed slightly to 2.44%, down from 2.64% in November 2024, indicating reduced price increases.
Food inflation surged to 39.84% year-on-year in December, a 5.91% rise from the 33.93% recorded in December 2023. Higher prices for staples like potatoes and yams largely drove this increase. Month-on-month, food inflation eased to 2.66% in December, a 0.32% drop from November’s 2.98%. The average annual food inflation rate for 2024 stood at 39.12%, significantly higher than 27.96% in 2023.
Meanwhile, core inflation, which excludes volatile food and energy prices, climbed to 29.28% year-on-year, reflecting persistent cost pressures stemming from seasonal factors and economic challenges.
Urban inflation surpassed rural inflation during the period under review, The urban inflation rate for December 2024 stood at 37.29% year-on-year, reflecting an increase of 6.30 percentage points from 31.00% in December 2023. On a month-on-month basis, urban inflation saw a slight decline to 2.56%, compared to 2.77% in November.
Rural inflation followed a similar pattern, rising to 32.47% year-on-year, an increase of 5.37 percentage points from the 27.10% recorded in December 2023. However, the month-on-month rural inflation rate also experienced a marginal drop, easing to 2.32% from 2.51% in November. These figures highlight the persistent pressures on consumer prices across urban and rural areas.
The report highlighted significant price hikes in transport fares, meals at local restaurants, and personal grooming services. The inflation surge, especially during a peak season for consumer spending, underscores the persistent economic challenges confronting Nigerians.
