Nigeria's inflation rate has surged to 34.8% in December, up from 33.6% in November, according to the latest consumer price index (CPI) report from the National Bureau of Statistics (NBS). The increase was attributed to heightened demand for goods and services during the festive season.

The NBS reported that the marginal increase of 0.20 percentage points was driven by the festive season, which led to a surge in demand for goods and services. This increase is a significant concern for the Nigerian economy, as it may lead to a decrease in purchasing power and a potential slowdown in economic growth.

The food inflation rate in December 2024 stood at 39.84%, marking an increase of 5.91 percentage points compared to December 2023. The rise in food inflation was attributed to the increased prices of yam, water yam, and sweet potatoes. This increase in food prices is particularly concerning, as it may lead to food insecurity and negatively impact the most vulnerable populations.

On a year-on-year basis, the headline inflation rate was 5.87% higher than the rate recorded in December 2023 (28.92%). This significant increase suggests that the Nigerian economy is facing persistent inflationary pressures, which may require monetary policy interventions to curb.

The report also stated that the average annual rate of food inflation for the twelve months ending December 2024 was 39.12%, marking an increase of 11.16 percentage points compared to the average annual rate of 27.96% recorded in December 2023. This sustained increase in food inflation is a worrying trend for the Nigerian economy, as it may lead to decreased economic growth and increased poverty.

The implications of this surge in inflation are far-reaching, and may lead to a decrease in investor confidence, a slowdown in economic growth, and decreased purchasing power for consumers. The Nigerian government will need to implement policies to curb inflation and stimulate economic growth, in order to mitigate the negative impacts of this surge in inflation.

In conclusion, the surge in Nigeria's inflation rate to 34.8% is a significant concern for the economy, and requires immediate attention from policymakers. The government must implement policies to curb inflation, stimulate economic growth, and protect the most vulnerable populations from the negative impacts of inflation.