Nigeria’s inflation rate climbed for the fourth consecutive month in December 2024, reaching 34.80% year-on-year, up from 34.60% in November, according to the National Bureau of Statistics (NBS).
The National Bureau of Statistics attributed this rise to heightened festive season demand, with significant contributions from food and non-alcoholic beverages. Food inflation slightly eased to 39.84% from 39.93% in November.
The Central Bank of Nigeria raised interest rates six times in 2024 to curb inflation. The government anticipates a reduction in inflation to 15% in 2025, supported by decreased imports of petroleum products.
Food inflation slightly eased to 39.84% in December from 39.93% in November, reflecting price increases in staples such as yam, sweet potatoes, beer, corn, rice, and fish.
The inflationary trend intensified after President Bola Tinubu’s 2023 economic reforms, which included devaluing the naira and cutting subsidies to stimulate growth and strengthen public finances.
Although inflation showed signs of easing in mid-2024 as the effects of the naira devaluation diminished, subsequent petrol price hikes reignited inflationary pressures, exacerbating the country’s most severe cost-of-living crisis in decades.
In response, the Central Bank of Nigeria raised interest rates six times in 2024 to curb inflation.
Boluwatife Enome
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