Nigeria’s Inflation Rate Rises for Fourth Consecutive Month

ABUJA (Reuters) – Nigeria’s inflation rate rose for the fourth straight month in December, reaching 34.80% on an annual basis, up from 34.60% in November, according to data released by the statistics agency on Wednesday.

The report indicated that the December increase was driven by heightened demand during the festive season. Food and non-alcoholic beverages were the primary contributors to the pricing pressures.

Inflation surged notably after President Bola Tinubu devalued the naira and eliminated fuel subsidies in 2023 to stimulate economic growth and improve public finances.

After peaking, inflation began to ease in July as the effects of the naira devaluation decreased. However, a spate of petrol price hikes reignited inflationary pressures, intensifying the worst cost of living crisis faced by Africa’s most populous nation in decades.

Food inflation stood at 39.84% year-on-year in December, slightly down from 39.93% in the previous month. Major price increases were observed for essential items such as yam, sweet potatoes, beer, corn, rice, and fish, as noted by the National Bureau of Statistics.

In an effort to control inflation, the central bank raised interest rates six times last year. The government expects inflation to decrease to 15% this year, aided by reduced imports of petroleum products, as stated by Tinubu during a budget speech in December.