Nigeria’s Inflation Rate Rises to 33.20%

Nigeria’s Inflation Rate Rises to 33.20%

Nigeria’s headline inflation rate rose by 150 basis points in March to 33.20% year on year from 31.70% reading in February,2024, according to statistics office. In April 2023, consumer inflation settled at 23.22% year on year. This suggests that inflation has grown by 10% in 12 months.

In its latest update, the National Bureau of Statistics (NBS) reported that on a month-on-month basis, headline inflation eased by 10 basis points to 3.02% from 3.12% in the previous month. Naira Suffers Big, CBN Goes Ballistic Against FX Whales

The monthly decline in headline inflation was driven by monetary policy tightening, analysts said noting that the apex bank has withdrawn large liquidity from the economy via Treasury and OMO bills sales.

According to the latest report, food inflation increased by 210bps to 40.01% year on year from 37.92% in February.

The rise in Food inflation on a year-on-year basis was due to increased prices of the following items: Garri, Millet, Akpu Uncooked Fermented , Yam Tuber, Water Yam (under Potatoes, Yam, and other Tubers class), Dried Fish Sadine, Mudfish Dried (under Fish class), Palm Oil, Vegetable Oil (under Oil and Fat), Beef Feet, Beef Head, Liver (under Meat class), Coconut, Water Melon (under Fruit Class), Lip-ton Tea, Bournvita, Milo (under Coffee, Tea and Cocoa Class).

Meanwhile, on a month-on-month basis, food inflation eased by 3.62%, relative to the 3.79% recorded in the previous month. Similarly, the core inflation (All items less farm produce and energy) expanded by 77 basis points to 25.90% year on year from 25.13%.

 The highest increases were recorded in prices of the following items: Bus Journey within the city, under Passenger Transport by Road class, Actual and Imputed Rentals for Housing, Consultation Fee of a medical doctor (under Medical Services class), and pharmaceutical products, etc.

Significant pressures were recorded in prices of Gas, Passenger Transport by Air, Liquid Fuel, Fuels, and Lubricants for Personal Transport Equipment, vehicle spare Parts, and Solid Fuel. The core index surged by 37bps to 2.54% m/m in March 2024 compared