Nigeria’s inflation rate has continued its upward trend, rising to 34.80% in December 2024, according to the National Bureau of Statistics (NBS). This represents a 0.20% increase from the 34.60% recorded in November 2024.
The food inflation rate was a major contributor to this increase, rising to 39.84% yearly, 5.91% points higher than in December 2023. The NBS attributed this rise to increased demand for goods and services during the December festive period.
The persistent rise in inflation has intensified concerns over its impact on purchasing power, with food and energy costs remaining major sources of pressure. Nigeria has experienced a sharp increase in food prices in recent years, worsened by President Bola Tinubu’s removal of petrol subsidies and adoption of a floating exchange rate for the naira.
Despite efforts to address the issue, including declaring a state of emergency on food insecurity and suspending duties, tariffs, and taxes on importing essential food items, food inflation remains a significant challenge.
The NBS report highlights the need for urgent action to address the rising inflation rate and its impact on the economy. As the government continues to grapple with the challenges of inflation, Nigerians are bearing the brunt of the rising costs of living.