Headline inflation keeps on rising, with nothing providing concrete hope it would decline soon
By Jeph Ajobaju, Chief Copy Editor
Nigeria’s headline inflation rate has risen again, notching up to 34.80 per cent in December 2024, up on 34.60 per cent in November, according to the latest data released by the National Bureau of Statistics (NBS).
Food inflation rate soared higher year-on-year (YoY) to 39.84 per cent in December 2024 or by 5.91 percentage points above 33.93 per cent in December 2023.
The NBS said the YoY rise in food inflation was caused by increases in the prices of some food items, including yam, sweet potatoes, and beer.
The December 2024 inflation figure rose 0.20 per cent versus November 2024 rate and “This was due to December festive period increases in demand for goods and services,” the NBS explained in a statement on its X (Twitter) handle on Wednesday.
Headline inflation rate was 5.87 per cent higher YoY than in December 2023 (28.92 per cent).
Hikes in food prices propel inflation, as national hardship continues
In late 2024, inflation jumped to 34.60 per cent in November, a hike of 0.72 percentage points from 33.88 per cent in October, stoking public fears that inflation might not decline in the next six months in the face of national hardship that makes even feeding difficult.
The figures are contained in the Inflation Expectations Survey Report for November published by the Statistics Department of the Economic Policy Directorate of the Central Bank of Nigeria (CBN).
The Consumer Price Index (CPI) report released by the National Bureau of Statistics (NBS) last December also shows that the latest inflation rate is a significant year-on-year (YoY) rise, with the November 2024 rate 6.40 percentage points higher than the 28.20 per cent in November 2023.
“In November 2024, the headline inflation rate was 34.60 per cent relative to the October 2024 headline inflation rate of 33.88 per cent. Looking at the movement, the November 2024 headline inflation rate showed an increase of 0.72 percentage points compared to the October 2024 headline inflation rate,” the report said.
“On a year-on-year basis, the headline inflation rate was 6.40 percentage points higher than the rate recorded in November 2023 (28.20 per cent). This shows that the headline inflation rate (year-on-year basis) increased in November 2024 compared to the same month in the preceding year (i.e., November 2023).”
The rise in inflation is largely driven by food price increases, which continue to place a strain on Nigerian households. On a month-on-month (MoM) basis, the headline inflation rate showed a marginal slowdown, standing at 2.638 per cent in November 2024 compared to 2.640 per cent in October
Food inflation has also seen a sharp rise, reaching 39.93 per cent in November 2024, up from 32.84 per cent in the same period last year. Prices for staple foods such as yam, rice, maize, and palm oil have surged, contributing to the increase in food inflation.
Other items such as guinea corn, millet, and meat have also seen notable price hikes.
Food inflation rose 2.98 per cent MoM, slightly up from 2.94 per cent in October. This increase was attributed to higher prices for items such as fish, rice, dairy products, and meat.
The 12-month average food inflation rate for the period ending November 2024 stoos at 38.67 per cent, marking an 11.58 percentage point rise from 27.09 per cent in November 2023
The significant increase in food prices is a key driver of the overall inflationary pressures facing the country, highlighting the difficulties in managing food supply chains and meeting domestic demand.
Core inflation, which excludes food and energy prices, rose to 28.75 per cent in November 2024, compared to 22.38 per cent in November 2023.
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