Nigeria's inflation rate has surged to 34.80% in December, marking a significant increase from 33.60% in November, according to the latest consumer price index (CPI) report from the National Bureau of Statistics (NBS). The marginal increase of 0.20 percentage points was attributed to heightened demand for goods and services during the festive season.

The NBS report highlighted that the food inflation rate in December 2024 stood at 39.84%, marking an increase of 5.91 percentage points compared to 33.93% in December 2023. This rise in food inflation was driven by the increased prices of yam, water yam, and sweet potatoes. On a month-on-month basis, the Food inflation rate in December 2024 was 2.66%, which shows a 0.32% decrease compared to the rate recorded in November 2024 (2.98%).

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 suggests that the country's food inflation has been on an upward trend, with significant implications for the overall economy.

The surge in inflation is likely to have far-reaching implications for Nigeria's economy, particularly for low-income households who are already struggling to make ends meet. With prices of essential goods and services on the rise, many Nigerians may be forced to adjust their spending habits, potentially leading to reduced consumer demand and slower economic growth.

Furthermore, the rising inflation rate may also put pressure on the country's monetary policy, with the Central Bank of Nigeria (CBN) potentially facing increased pressure to raise interest rates to combat inflation. This could have a ripple effect on the entire economy, impacting borrowing costs, investment, and overall economic activity.

In conclusion, Nigeria's surging inflation rate is a cause for concern, and policymakers must take swift action to address the underlying factors driving this trend. By implementing effective measures to curb inflation, the government can help mitigate its impact on the economy and ensure sustainable economic growth.