
Nigeria’s inflation rate has increased for the fourth month in a row, reaching 34.80 percent in December, according to figures released by the country’s statistics agency. The new data, which surpasses November’s rate of 34.60 percent, reflect ongoing pressures on household budgets in Africa’s largest economy.
Analysts attribute much of the jump to heightened demand tied to festive-season spending. The National Bureau of Statistics notes that food inflation stood at 39.84 percent year-on-year in December, with essential items like sweet potatoes, rice, and beer experiencing notable price hikes. This upward trend follows a series of fiscal and monetary reforms introduced in 2023, including a currency devaluation and the removal of key subsidies, all aimed at revitalizing economic growth and stabilizing public finances.
While inflation had momentarily dipped last summer, a surge in petrol costs contributed to renewed price pressures that have intensified the nation’s deepening cost of living crisis. Many Nigerians are struggling to keep pace with escalating expenses, making essentials such as food and transportation increasingly difficult to afford.
Looking ahead, government officials project that inflation will drop to around 15 percent over the next year, largely on the expectation that a reduction in petroleum imports will ease persistent supply bottlenecks. However, some economists remain skeptical, cautioning that inflationary pressures could persist unless structural changes—such as boosting domestic production and improving transport infrastructure—are undertaken. As policymakers consider additional measures to temper rising costs, ordinary citizens continue to feel the financial squeeze in their daily lives.