Inflation Rate Rises Marginally to 34.80% in December 2024 – NBS
By Patience Ikpeme
The National Bureau of Statistics (NBS) has reported a marginal increase in the Consumer Price Index (CPI), which measures inflation, to 34.80% in December 2024, compared to 34.60% in November. According to the NBS, the 0.20% rise was driven by increased demand for goods and services during the festive season.
In a report released on Wednesday through its official X handle, the NBS stated that the headline inflation rate on a year-on-year basis rose by 5.87% from 28.92% recorded in December 2023.
However, inflation on a month-on-month basis showed a slight decline, settling at 2.44% in December 2024, compared to 2.64% in November. This indicated a slower rate of increase in average price levels compared to the previous month.
Food inflation rose sharply to 39.84% on a year-on-year basis in December 2024, an increase of 5.91% from the 33.93% recorded in December 2023. The rise in food prices was attributed to increases in the cost of yams, sweet potatoes, rice, guinea corn, dried fish, and other staples. On a month-on-month basis, food inflation fell to 2.66% in December 2024 from 2.98% in November. This decrease was attributed to lower average prices of items such as local beer, fruit juice, malt drinks, rice, and water yams.
The average annual food inflation rate for the twelve months ending December 2024 was 39.12%, representing an increase of 11.16% compared to the 27.96% recorded in December 2023.
Core inflation, which excludes volatile agricultural produce and energy prices, rose to 29.28% in December 2024, up by 6.21% from 23.06% recorded in December 2023. The increase was attributed to higher costs of transport services, meals at restaurants, personal grooming services, and travel bags.
On a month-on-month basis, core inflation rose to 2.24% in December from 1.83% in November. For the twelve months ending December 2024, the average annual core inflation rate was 27.15%, an increase of 6.39% compared to the 20.76% recorded in December 2023.
Inflation rates varied across states. On a year-on-year basis, the highest headline inflation rates were recorded in Bauchi at 44.06%, Sokoto at 42.43%, and Kebbi at 41.47%. In contrast, the lowest rates were seen in Katsina at 28.33%, Delta at 29.23%, and Imo at 29.99%. On a month-on-month basis, Kogi experienced the highest headline inflation increase at 5.40%, followed by Cross River at 4.38% and Sokoto at 4.29%. Conversely, Yobe, Kano, and Abuja recorded month-on-month declines of 1.82%, 0.57%, and 0.02%, respectively.
For food inflation, the highest year-on-year rates were recorded in Sokoto at 57.47%, Zamfara at 46.39%, and Edo at 46.32%. The lowest rates were observed in Ogun at 34.24%, Rivers at 35.43%, and Kwara at 35.58%. Month-on-month food inflation was highest in Kogi at 6.53%, Sokoto at 6.21%, and Cross River at 5.90%, while Yobe, Kano, and Abuja experienced declines of 3.21%, 1.29%, and 0.79%, respectively.
The report underscores persistent inflationary pressures driven by seasonal demand and structural challenges in key sectors. Policymakers may need to address these issues through targeted interventions to stabilize prices and ensure economic stability.
