Nigeria's inflation rate increased for the fourth consecutive month in December, according to data released by the statistics agency on Wednesday.

Nigeria's inflation rate rose for the fourth consecutive month in December, increasing to 34.80% on an annual basis from 34.60% in November, according to data released by the country's statistics agency on Wednesday.

The agency explained that the increase in December was primarily driven by higher demand linked to the festive season. The prices of food and non-alcoholic beverages were the main contributors to the overall price pressures.

Inflation surged significantly after President Bola Tinubu devalued the naira and reduced subsidies in 2023 as part of efforts to stimulate economic growth and improve public finances. However, the inflation rate began to ease in July of the previous year, as the impact of the naira devaluation started to subside. This easing was short-lived, as a series of petrol price hikes reignited inflationary pressures, worsening the already severe cost of living crisis in the most populous nation in Africa.

Food inflation stood at 39.84% year-on-year in December, slightly lower than the 39.93% recorded in November. The National Bureau of Statistics attributed the food price increases to items such as yam, sweet potatoes, beer, corn, rice, and fish.

In an effort to control inflation, Nigeria's central bank raised interest rates six times throughout the previous year. Meanwhile, the government has projected that inflation will drop to 15% this year, bolstered by a reduction in petroleum product imports, as noted by President Tinubu during his budget speech in December.