Nigeria’s headline inflation rose by 20bps to 34.80% in December against November: 34.60%.

The increase was primarily attributed to the higher core prices despite a moderation in food inflation. The figure is 11bps lower than Cordros’ estimate 34.91%.

Meanwhile, on a month-on-month basis, headline inflation eased by 20bps to 2.44% (November: 2.64% m/m). Food inflation slowed by 8bps to 39.84% y/y (November: 39.93% y/y).

Despite the slower food prices, the outturn remains above 2024FY average (+39.10%) due to higher prices of the following items; Yam, Water Yam, Coco Yam (Potatoes, Yam & Other Tubers Class),

Guinea Corn, Maize Grains, Rice (Bread and Cereals Class), Beer, Pinto (Tobacco Class), and Palm Oil, Vegetable Oil (Oil and Fats Class. On a month-on-month basis, food inflation moderated to 2.66%, relative to the 2.98% m/m recorded in the previous month.

Elsewhere, core inflation (All items less farm produce and energy) expanded by 53bps to 29.28% y/y (November: 28.75 y/y).

The highest increases were recorded in prices of the following items; Taxi journey per drop, Bus journey intercity, Journey by motorcycle, (under Passenger Transport by Road Class), Rents (Actual and Imputed Rentals for Housing Class),

Meal at a local Restaurant (Accommodation Service Class), and hair cut service, women’s hairdressing (Hairdressing salons & personal grooming establishments Class).

The core index surged by 41bps to 2.24% m/m in December 2024 compared to the previous month (November: 1.83% m/m).