Nigeria’s inflation rate rose to 34.80% in December 2024, up from 34.60% in November, according to the latest Consumer Price Index and inflation data released by the National Bureau of Statistics (NBS) on Wednesday, January 15.
The increase, a marginal 0.20%, was attributed to heightened demand for goods and services during the festive season.
On a year-on-year basis, the inflation rate in December marked a significant jump of 5.87 percentage points compared to 28.92% in December 2023. The NBS noted that this represented a substantial rise in headline inflation compared to the same month in the previous year.
In terms of food inflation, the rate decreased slightly to 39.83% in December 2024, down from 39.93% in November, on a year-on-year basis.
Despite the ongoing inflationary rise, the Centre for the Promotion of Private Enterprise (CPPE) has offered suggestions to help reduce the inflation rate.
In response to the data, CPPE emphasized that Nigeria’s inflation could moderate if the Central Bank of Nigeria pauses its monetary tightening policy and works to reduce fiscal risks.
The CPPE recommended the following measures for easing inflationary pressures: “A pause on monetary policy tightening and interest rate hikes by the CBN to reduce business operating costs, along with a reduction in fiscal risks through a lower fiscal deficit and slower growth in public debt.”
