Nigeria’s inflation rate climbs to new height of 34.80% in December

Nigeria’s headline inflation rose by 20 basis points to 34.80% year on year in December, from 34.60% in November due to unstable price movement across the economy. The increase was primarily attributed to the higher core prices despite a moderation in food inflation, according to consumer price index (CPI) data released by the National Bureau of Statistics (NBS) today.
The figure is 11 bps lower than Cordros’ estimate of 34.91% for the month. Meanwhile, on a month-on-month basis, headline inflation eased by 20 bps to 2.44% from 2.64% in November 2024. Food inflation slowed by 8 bps to 39.84% year on year from 39.93% in November. Despite the slower food prices, analysts at Cordros Capital Limited said the outturn remained above 2024 average of +39.10% due to higher prices of the food items.
The food items include Yam, Water Yam, Coco Yam (Potatoes, Yam & Other Tubers Class), Guinea Corn, Maize Grains, Rice (Bread and Cereals Class), Beer, Pinto (Tobacco Class), and Palm Oil, Vegetable Oil (Oil and Fats Class). On a month-on-month basis, food inflation moderated to 2.66%, relative to the 2.98% recorded in the previous month, according to data released today. Elsewhere, core inflation (All items less farm produce and energy) expanded by 53 bps to 29.28% year on year from 28.75 in the previous months.
The highest increases were recorded in prices of Taxi journey per drop, Bus journey intercity, Journey by motorcycle, (under Passenger Transport by Road Class), and Rents (Actual and Imputed Rentals for Housing Class), Meal at a local Restaurant (Accommodation Service Class), and hair cut service, women’s hairdressing (Hairdressing salons & personal grooming establishments Class). The core index surged by 41 bps to 2.24% m/m in December 2024 compared to 1.83% in November, the consumer price index figure released by the statistics office revealed.