Nigeria’s headline inflation rate increased slightly to 34.80% in December 2024, up by 0.20% from November’s 34.60%, according to the National Bureau of Statistics (NBS). This rise is largely attributed to increased demand for goods and services during the festive season.
The inflation rate for December 2024 was 5.87% higher than the same month in 2023, which had a rate of 28.92%, indicating a significant year-on-year increase in the cost of living.
On a month-on-month basis, inflation in December was 2.44%, a slight deceleration from November’s 2.64%. This suggests a minor slowdown in the rate of price increases between November and December.
The Consumer Price Index (CPI), a key measure of inflation, reflects the average price change over time in goods and services that people consume regularly. The NBS employs rigorous statistical techniques, involving data from over 10,500 informants across Nigeria, to compile the CPI, which currently includes 740 regularly priced items in its market basket.
Rising inflation rates like this are significant as they erode purchasing power, making it harder for individuals and households to afford basic goods and services. Policymakers will need to monitor these trends closely to implement measures that can help stabilize the economy and ease the burden of inflation on Nigerians.
