
Nigeria‘s inflation rate experienced a slight uptick in December 2024, climbing to 34.8% from 34.6% in November.
The National Bureau of Statistics (NBS) attributed this increase to heightened demand for goods and services during the festive season.
Inflation Rate Rises by 0.20% Month-on-Month
The NBS revealed in its Consumer Price Index (CPI) report for December 2024 that the headline inflation rate increased marginally by 0.20% compared to the previous month.
“Looking at the movement, the December 2024 headline inflation rate showed a marginal increase of 0.20% compared to November 2024. This was due to the December festive period increases in demand for goods and services,” the NBS stated.
Year-on-Year Inflation Sees Significant Increase
On a year-on-year basis, the headline inflation rate in December 2024 was significantly higher than the same period in 2023. December 2024 recorded an inflation rate of 34.8%, marking a 5.87% rise from the 28.92% rate recorded in December 2023.
“This indicates that the headline inflation rate (year-on-year basis) increased in December 2024 compared to the same month in the preceding year,” the report added.
Month-on-Month Inflation Declines Slightly
Despite the year-on-year surge, the NBS reported a slight decrease in the month-on-month inflation rate. The rate in December 2024 was 2.44%, which is 0.20% lower than the 2.64% recorded in November.
“This means that in December 2024, the rate of increase in the average price level was slightly lower than that in November 2024,” the NBS explained.
Comparison with Britain’s Inflation Rate
In contrast to Nigeria’s inflationary trend, the United Kingdom witnessed a decline in its annual inflation rate, which dropped unexpectedly to 2.5% in December 2024 from 2.6% in November.
The UK’s Office for National Statistics (ONS) highlighted that this slight decrease offered some relief to the Labour government amidst ongoing economic challenges. Analysts had anticipated no change in the UK Consumer Prices Index (CPI) for December, but the unexpected drop has eased some pressure on the government.
Nigeria’s rising inflation underscores the economic challenges faced during periods of increased consumer spending. As demand surges during festive seasons, it becomes critical to manage inflationary pressures to protect the purchasing power of citizens. Meanwhile, the contrasting decline in the UK’s inflation rate highlights varying economic dynamics across countries.