Nigeria’s inflation rate hits 33.20% in March despite dollar crash

Nigeria’s headline inflation rate increased to 33.20 per cent in March 2024, the National Bureau of Statistics said.

According to the NBS’ Consumer Price Index (CPI) and Inflation Report for March, the figure represents a 1.50 per cent increase from the 31.7 per cent recorded in February 2024.

It said that on a year-on-year basis, the headline inflation rate in March 2024 was 11.16 per cent higher than the rate recorded in March 2023, 22.04 per cent.

On a month-on-month basis, the headline inflation rate for March 2024 was 3.02 per cent, a decrease of 0.10 per cent from February 2024, when it was 3.12 per cent.

“This means that in March 2024, the rate of increase in the average price level is less than the rate of increase in the average price level in February 2024,” NBS said.

It said the increase in food, non-alcoholic beverages, energy, housing costs, water, gas, fuel, clothing and footwear, and transport drove March’s inflation rate.

NBS said others were furnishings, household equipment and maintenance, education, health, miscellaneous goods and services, restaurants and hotels, alcoholic beverages, tobacco and kola, recreation and culture, and communication.

In March 2024 alone, the food inflation rate reached 40.01 per cent year-on-year, marking an increase of 15.56 per cent points from 24.45 per cent in 2023.

“The rise in food inflation on a year-on-year basis is caused by increases in prices of garri, millet, akpu (uncooked fermented, which are under bread and cereals class), yam tuber, and water yam.

“Others are dried fish sardine, mudfish dried, palm oil, vegetable oil, beef feet, beef head, liver, coconut, watermelon, Lipton Tea, Bournvita, and Milo”, NBS said.

It said on a month-on-month basis, the food inflation rate in March was 3.62 per cent, a 0.17 per cent decrease compared to the rate recorded in February 2024 at 3.79 per cent.

“The fall in food inflation on a month-on-month basis was caused by a decrease in the average prices of Guinea corn flour, plantain flour, etc. (under bread and cereals class), yam, Irish potato, and cocoyam.

“Others are Titus fish, Mudfish Dried, Lipton, Bournvita, and Ovaltine,” it said.

The report said, “All items less farm produce and energy’’ or core inflation, which excludes the prices of volatile agricultural produce and energy, stood at 25.90 per cent in March on a year-on-year basis.

“This increased by 6.26 per cent compared to 19.63 per cent recorded in March 2023.

“The exclusion of the PMS is due to the deregulation of the commodity by removal of subsidy.”

It said the highest increases were recorded in prices of bus journeys within the city, actual and imputed rentals for housing, consultation fees of a medical doctor, etc.

The report said on a year-on-year basis in March 2024, the rural inflation rate was 31.45 per cent, which was 10.37 per cent higher than the 21.09 per cent recorded in March 2023.

“On a month-on-month basis, the rural inflation rate was 2.87 per cent, which decreased by 0.20 per cent compared to February 2024 at 3.07 per cent,’’ it said.

The report, however, said that in March 2024, the monthly inflation rate for all items was highest in Zamfara at 3.90 per cent, followed by Abia at 3.89 per cent and Ondo at 3.75 per cent.

“Borno at 1.46 per cent, followed by Yobe at 1.84 per cent and Adamawa at 1.85 per cent recorded the slowest rise in month-on-month inflation”, NBS said.

The report said on a year-on-year basis, food inflation was highest in Kogi at 48.46 per cent, followed by Kwara at 46.18 per cent, and Akwa Ibom at 45.18 per cent.

“Nasarawa at 33.76 per cent, followed by Borno at 34.28 per cent and Bauchi at 34.38 per cent, recorded the slowest rise in food inflation on a year-on-year basis,’’ it said.

However, the report said on a month-on-month basis that food inflation was highest in Abia at 5.17 per cent, Cross River at 5.14 per cent, and Bayelsa at 4.75 per cent.

“Cross River stood at 1.59 per cent, followed by Yobe at 2.08 per cent and Adamawa at 2.12 per cent, recorded the slowest rise in inflation on a month-on-month basis,” it said.

(NAN)