Nigeria's Inflation Rate Rises to 34.80% in December

Nigeria's inflation rate rose to 34.80% in December 2024, up from 34.60% in November, primarily driven by increased consumer demand during the festive season and rising food prices. The National Bureau of Statistics reported that year-on-year inflation was 5.87% higher than December 2023, while month-on-month inflation decreased to 2.44%. Food inflation reached 39.84%, slightly down from 39.93% in November, with significant contributions from staples like yam and rice. Analysts predict inflation may moderate in the second half of 2025, potentially dropping to 25-27%. The upcoming Monetary Policy Committee meeting in February is expected to address concerns over rising prices, as the recent adjustments in the consumer price index aim to better reflect current consumption patterns. The economic outlook remains uncertain, with continued pressures from petrol price increases and currency devaluation affecting household incomes.