Headline Inflation
In December 2024, the Headline inflation rate rose slightly to 34.80% from 34.60% in November 2024, reflecting a 0.20% increase, driven by higher demand during the festive period.
Year-on-year, inflation was 5.87% higher than December 2023’s rate of 28.92%. However, on a month-on-month basis, inflation eased to 2.44%, down by 0.20% from November 2024’s 2.64%, indicating a slower rate of price increase compared to the previous month.
Source: NBS, Futureview Research
Urban Inflation
Year-on-year, the Urban inflation rate in December 2024 stood at 37.29%, marking a 6.30 percentage point increase from 31.00% in December 2023. Month-on-month, it eased to 2.56%, 0.21 percentage points lower than November 2024’s rate of 2.77%. The twelve-month average Urban inflation rate for December 2024 was 35.57%, up by 9.36 percentage points compared to 26.22% in December 2023.
Rural Inflation
The Rural inflation rate in December 2024 stood at 32.47% year-on-year, 5.37 percentage points higher than the 27.10% recorded in December 2023. Month-on-month, it eased to 2.32%, reflecting a 0.19 percentage point drop from November 2024’s rate of 2.51%. The twelve-month average Rural inflation rate for December 2024 was 31.14%, an increase of 7.89 percentage points compared to 23.25% in December 2023.
Food Inflation
In December 2024, the Food inflation rate stood at 39.84% year-on-year, 5.91 percentage points higher than the 33.93% recorded in December 2023. This increase was driven by rising prices in items such as yam, water yam, sweet potatoes (Potatoes, Yam & Other Tubers), beer, pinto (Tobacco Class), guinea corn, maize grains, rice (Bread and Cereals Class), and dried fish varieties like sardine and catfish (Fish Class).
Month-on-month, the Food inflation rate was 2.66% in December 2024, reflecting a 0.32 percentage point decline from November 2024’s 2.98%. This decrease resulted from slower price increases in items such as local beer (Burukutu), pinto (Tobacco Class), fruit juice in tins, malt drinks (Soft Drinks Class), rice, millet, maize flour (Bread and Cereals Class), and water yam, Irish potatoes, coco yam (Potatoes, Yam & Other Tubers Class).
The average annual Food inflation rate for the 12 months ending December 2024 was 39.12%, 11.16 percentage points higher than the 27.96% recorded in December 2023.
Core Inflation (All Items less Farm Produce and Energy)
The “All items less farm produces and energy” or Core inflation, which excludes the prices of volatile agricultural produces and energy stood at 27.47% in July 2024 on a year-on-year basis; up by 6.99% when compared to the 20.47% recorded in July 2023. The highest increases were recorded in prices of the following items, Rents (Actual and Imputed Rentals for Housing Class), Bus Journey intercity, Journey by motorcycle, etc (under Passenger Transport by Road Class), and Accommodation Service, Laboratory service, X-ray photography, Consultation Fee of a medical doctor, etc (under Medical Services Class). On a month-on-month basis, the Core Inflation rate was 2.16% in July 2024. It stood at 2.06% in June 2024, an increase of 0.10%. The average twelve-month annual inflation rate was 24.65% for the twelve months ending July 2024; this was 5.81% points higher than the 18.84% recorded in July 2023.
State Profiles
All Items Inflation
In December 2024, the highest Year-on-Year inflation rates were recorded in Bauchi (44.06%), Sokoto (42.43%), and Kebbi (41.47%), while the lowest rates were observed in Katsina (28.33%), Delta (29.23%), and Imo (29.99%). On a Month-on-Month basis, the largest increases were in Kogi (5.40%), Cross River (4.38%), and Sokoto (4.29%). In contrast, declines were recorded in Yobe (-1.82%), Kano (-0.57%), and Abuja (-0.02%).
Food Inflation
In December 2024, Sokoto (57.47%), Zamfara (46.39%), and Edo (46.32%) recorded the highest Year-on-Year Food inflation rates, while the slowest increases were observed in Ogun (34.24%), Rivers (35.43%), and Kwara (35.58%). On a Month-on-Month basis, the highest Food inflation rates were in Kogi (6.53%), Sokoto (6.21%), and Cross River (5.90%), while declines were recorded in Yobe (-3.21%), Kano (-1.29%), and Abuja (-0.79%).
