By Hosea Parah, Abuja
Nigeria’s inflation rate has experienced a slight increase in December 2024, with the Consumer Price Index (CPI) rising to 34.80% year-on-year, up by 0.20% from 34.60% in November 2024. The increase was largely driven by higher demand for goods and services during the festive season.
According to the National Bureau of Statistics (NBS), Compared to December 2023, inflation has surged by 5.87%, up from 28.92% in the same month last year.
Food prices remain the main driver of inflation, with food inflation reaching 39.84% year-on-year. The increase is primarily due to price hikes in essential food items such as yam, maize, rice, and dried fish. However, on a month-on-month basis, food inflation showed signs of easing, decreasing from 2.98% in November 2024 to 2.66% in December.
Core inflation, which excludes volatile items like agricultural products and energy, stood at 29.28% year-on-year, marking a 6.21% rise from the previous year. Significant price increases were observed in transport services, such as bus and taxi fares, as well as in personal grooming services and meals at local restaurants.
Inflation varied across regions, with Bauchi (44.06%), Sokoto (42.43%), and Kebbi (41.47%) experiencing the highest year-on-year rates. In contrast, states like Katsina, Delta, and Imo saw relatively lower inflation rates.
The Urban inflation rate for December 2024 was recorded at 37.29%, up from 31.00% in December 2023, while the Rural inflation rate increased to 32.47%, up from 27.10% the previous year.
On a month-on-month basis, the overall inflation rate for December 2024 stood at 2.44%, a slight decrease from 2.64% in November, indicating a modest slowdown in the pace of price increases.
The National Bureau of Statistics (NBS) noted that while inflation remains high, the December 2024 data underscores significant regional disparities and ongoing pressures, especially in food prices and core goods and services.
As inflation continues to affect key sectors like food and transport, attention will turn to the government’s economic policies to address these challenges in the coming months