Nigeria’s inflation rate rose to 34.80 percent in December 2024 from 34.60 percent in November, according to the latest Consumer Price Index and inflation figures provided by the National Bureau of Statistics (NBS) on Wednesday, January 15.
The December inflation report showed that the country’s inflation increased modestly by 0.20 percent due to increased demand for goods and services during the holiday season.
On a year-over-year basis, the December inflation rate increased significantly by 5.87 percentage points to 28.92 percent in December 2023.
“On a year-on-year basis, the headline inflation rate was 5.87 percent higher than the rate recorded in December 2023 (28.92 percent). This shows that the headline inflation rate (on a year-on-year basis) increased in December 2024 compared to the same month in the preceding year (i.e., December 2023),” NBS stated.
Meanwhile, the NBS reported that Nigeria’s food inflation rate fell slightly to 39.83 percent in December 2024, down from 39.93 percent in November.
While the country’s inflation continues to climb, the Centre for the Promotion of Private Enterprise (CPPE) has suggested how Nigeria’s inflation rate might be reduced.
In response to the report, CPPE stated that Nigeria’s inflation could moderate if the Central Bank of Nigeria paused its monetary tightening strategy, decreasing fiscal risks.
“To ensure a further moderation in inflationary pressures, CPPE recommends as follows: “Pause on monetary policy tightening and interest rate hikes by the CBN to reduce business operating costs.
“Reduction in fiscal risks to macroeconomic stability through a reduction in fiscal deficit and deceleration in growth of public debt,” the CPPE stated.
