Nigeria’s inflation hits 33.2% in March
Nigeria’s headline inflation increased to 33.20% year on year in March, up from the 31.70% reported in February, as per data from the National Bureau of Statistics (NBS).
The headline inflation rate for March 2024 saw a rise of 1.50% points compared to the rate recorded in February 2024.
On a year-on-year basis, the headline inflation rate was 11.16% points higher compared to the rate recorded in March 2023, which was 22.04%.
Looking at a month-on-month basis, the headline inflation rate in March 2024 was 3.02%, which was 0.10% lower than the rate recorded in February 2024 (3.12%).
Inflation in Africa’s largest economy has hit its highest point in nearly thirty years, fuelled by a huge depreciation in the value of the naira and the removal of the age-long fuel subsidy that previously kept fuel prices low for citizens.
Items that contributed to the increase in the headline index include food & non-alcoholic beverages, housing, water, electricity, gas & other fuel, clothing & footwear, and transport, among others.
Urban inflation: On a month-on-month basis, the urban inflation rate for March 2024 stood at 3.17%, showing a negligible decrease of 0.0001% points compared to February 2024 (3.17%).
Rural inflation: On a month-on-month basis, the rural inflation rate in March 2024 was 2.87%, a decrease of 0.20 percentage points compared to February 2024, when it was 3.07%.
Food inflation
The Food inflation rate in March 2024 was 40.01% on a year-on-year basis, which was 15.56% points higher compared to the rate recorded in March 2023 (24.45%).
In March 2024, the food inflation rate on a month-on-month basis stood at 3.62%, a decrease of 0.17% compared to February 2024, when the rate was 3.79%.
The decline in food inflation on a month-on-month basis was attributed to a decrease in the rate of increase in the average prices of items such as Guinea corn flour, plantain flour, yam, Irish potato, cocoyam, and Titus fish, among others.
In response to the overall inflationary pressures, the central bank has increased interest rates twice this year to mitigate the situation.
Central Bank Governor Olayemi Cardoso has stated that the bank’s Monetary Policy Committee anticipates a moderation in price pressures starting in May.
