Business
Rising inflation dampens festive spirit as food prices near 40% surge in 2024
As Nigerians celebrate the festive season, the soaring inflation rates in 2024 have cast a shadow over traditional holiday cheer.
According to data from the National Bureau of Statistics (NBS), the Consumer Price Index (CPI) for food and non-alcoholic beverages climbed to a staggering 39.87 per cent in November 2024, up from 32.63 per cent in the same period last year—a sharp year-on-year increase of 7.24 percentage points.
The spike in food prices reflects broader inflationary pressures across the economy, driven by currency devaluation, escalating import costs, and disruptions in supply chains.
These economic realities have left many families grappling with strained budgets as they attempt to maintain their holiday traditions.
Inflation in this category has surged throughout 2024, peaking at 40.73 per cent in June.
Contributing factors include the removal of fuel subsidies, skyrocketing transportation costs, and increased production expenses.
November’s inflation rate of 39.87 per cent marks a continuation of the year-long trend, creating significant challenges for households as food prices dominate festive spending.
For Nigerians indulging in festive drinks, the inflation rate for this category doubled year-on-year, rising from 16.52 per cent in November 2023 to 30.08 per cent in November 2024.
The steady climb reflects manufacturers passing rising input costs onto consumers.
In the clothing and footwear category, prices rose at a slower pace compared to food and beverages, with inflation increasing from 16.63 per cent in November 2023 to 20.25 per cent in November 2024.
Despite being less steep, the rise underscores inflationary pressures across all sectors, particularly for imported items.
Inflation for recreation and culture recorded a comparatively modest increase, rising from 8.84 per cent to 9.76 per cent over the year.
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This reflects a prioritization of essential goods over discretionary spending in tight economic conditions.
The festive season, traditionally marked by increased spending on food, gifts, and social activities, has been notably subdued in 2024.
With food prices nearing a 40 per cent inflation rate and wages failing to keep pace with rising costs, many Nigerians have been forced to cut back.
A Lagos-based economist, Dr. Sarah Adetunji, highlighted the broader implications:
“The average Nigerian household spends over 50 per cent of its income on food. With inflation soaring, discretionary spending on items like clothing, recreation, and even traditional celebrations has drastically reduced. This trend is eroding the festive spirit that many look forward to all year.”
Economic analysts attribute the persistent inflation to a mix of local and global factors. Key drivers include: Naira’s depreciation which has led to higher import costs, directly impacting food and beverage prices.
Also, fuel subsidy removal has led to higher transportation costs among many other challenges.
To address these issues, experts are calling for urgent policy interventions.
Encouraging domestic agriculture and manufacturing to reduce reliance on imports and stabilizing the naira to control import-driven inflation.
Dr. Adetunji noted, “While policy declarations have been made, implementation is critical. The government must act swiftly to stabilize prices and restore consumer confidence, especially as we enter 2025.
For many Nigerian families, the holiday season has become a balancing act between preserving traditions and managing rising costs.
Essential goods such as food and beverages remain a priority, while spending on non-essentials like recreation and clothing has taken a backseat.
Nigerians are hoping for tangible measures to curb inflation and improve living standards.
As 2024 closes with record-high inflation rates, the focus shifts to the government’s plans to address these economic challenges in the coming year.
For now, the festive season serves as a stark reminder of the widening gap between income levels and the cost of living, leaving many to wonder what 2025 will bring.