Nigeria’s inflation rate rose to 34.80% in December 2024 from 34.60% recorded for the month of November, according to the National Bureau of Statistics (NBS).
This represents the fourth consecutive month of increase and the highest level in recent years
Headline inflation was driven by seasonal demand during the festive period and continued price hikes in essential commodities.
Food inflation stood at 39.84% year-on-year with staple items such as yam, sweet potatoes, corn, rice, and fish recording significant price increases.
This surge in inflation comes amid broader economic challenges, including the lingering effects of policy adjustments made in 2023.
The removal of subsidies and the devaluation of the naira while aimed at bolstering public finances, have exacerbated inflationary pressures. While these measures initially moderated inflation earlier in the year, subsequent increases in fuel prices reignited consumer price hikes.
The Central Bank of Nigeria has responded to the inflationary trend with six interest rate hikes over the past year.
However, inflation remains stubbornly high across the board with businesses and households bearing the brunt.
The NBS report noted that rising food prices remain a key driver of inflation. Analysts suggest that supply chain disruptions, currency volatility and structural challenges within the agricultural sector have compounded the problem.
Looking ahead, the federal government has set an ambitious target of reducing inflation to 15% in 2025. Officials anticipate that decreased imports of petroleum products and other strategic measures will help achieve this goal.
However, achieving this target will require efforts to address the underlying factors fueling inflation.
The challenges posed by high inflation extend beyond economic statistics, affecting the daily lives of millions of Nigerians.
As the government and policymakers work to stabilize prices, the economic environment remains volatile, with businesses and consumers bearing the brunt of rising costs.