Festive Spending Fuels Marginal Increase, Says NBS
The National Bureau of Statistics (NBS) has announced a slight uptick in Nigeria’s inflation rate, which climbed to 34.80% in December 2024. This marks a 0.20% increase from the 34.60% recorded in November, driven by heightened consumer demand during the holiday season.
Year-on-Year Comparison Reveals Significant Spike
According to the latest Consumer Price Index (CPI) report released on Wednesday, the inflation rate for December 2024 is 5.87 percentage points higher than the 28.92% recorded in December 2023. The report attributes the increase to persistent economic challenges, including currency depreciation, high energy costs, and ongoing supply chain disruptions.
Key Contributors to Inflationary Pressure
The report highlighted food and non-alcoholic beverages as the primary contributors, accounting for 18.02% of the overall inflation figure. Housing, water, electricity, gas, and other fuels contributed 5.82%, while the transport sector added 2.26%. Minor contributions came from sectors like health and communication, which accounted for 1.05% and 0.24%, respectively.
Urban vs. Rural Inflation
Urban inflation outpaced rural inflation during the period under review, with urban areas recording a year-on-year rate of 37.29%, up from 31.00% in December 2023. Rural inflation stood at 32.47%, reflecting a 5.37 percentage point increase from the previous year. Despite the annual rise, month-on-month inflation rates saw marginal declines, with urban inflation at 2.56% and rural inflation at 2.32%.
Food and Core Inflation Trends
Food inflation surged to 39.84% year-on-year in December, up from 33.93% the previous year. Key drivers included staples like yams, rice, and dried fish. However, month-on-month food inflation eased slightly to 2.66%, influenced by price reductions in items such as local beer and soft drinks. Core inflation, which excludes agricultural and energy goods, rose to 29.28% year-on-year, up from 23.06% in December 2023.
Regional Inflation Variations
Bauchi recorded the highest inflation rate among states at 44.06%, followed by Sokoto at 42.43% and Kebbi at 41.47%. Conversely, Katsina posted the lowest inflation rate at 28.33%. Food inflation was highest in Sokoto at 57.47%, with Zamfara and Edo trailing at 46.39% and 46.32%, respectively. The figures underscore the economic challenges facing Nigeria, particularly as consumer prices continue to rise across various sectors.
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