Nigerian inflation increased in December for the fourth consecutive month

Nigeria’s inflation rate increased for the fourth consecutive month in December, rising from 34.60% in November to 34.80% in annual terms (NGCPIY=ECI), according to figures released by the statistics office on Wednesday.

In a report, the agency said that the Christmas season’s higher demand was the cause of the December hike. Most of the price pressure was caused by food and non-alcoholic drinks.

Following President Bola Tinubu’s 2023 devaluation of the naira and reduction of subsidies in an attempt to boost economic development and strengthen governmental finances, inflation skyrocketed.

The impact of the naira devaluation began to lessen in July of last year, but a slew of rises in the price of gasoline exacerbated the greatest cost of living crisis in decades in Africa’s most populous country.

According to the National Bureau of Statistics, food inflation in December was 39.84% year over year, up from 39.93% the month before (NGFINF=ECI), opens new tab. This was because prices for goods including yam, sweet potatoes, beer, corn, rice, and fish increased.

Last year, the central bank raised interest rates six times in an effort to curb inflation.

During a budget address in December, Tinubu stated that the Nigerian government anticipates that fewer petroleum product imports would help bring inflation down to 15% this year.