Home Business Nigeria’s Inflation Rate Hits 33.20% Despite Naira Rebound

Nigeria’s Inflation Rate Hits 33.20% Despite Naira Rebound

by Editor
107 views

Despite the Naira rebound against the Dollar, Nigeria’s headline inflation rate hit 33.2 percent in March 2024. This represents a 1.5 percentage points year-on-year (YoY) increase from 31.7 percent recorded in February 2024.

In recent weeks, the naira has appreciateed against the dollar, gaining over 40%, from about N1,900/$ to about N1,100/$1 now.

According to the National Bureau of Statistics (NBS)’s Consumer Price Index (CPI) released on Monday,  the March 2024 headline inflation rate showed an increase of 1.50% points when compared to the February 2024 headline inflation rate.

Data from the statistics office, revealed that food inflation increased YoY by 2.09 percentage points to 40.01 percent in March from 37.92 percent in February.

The NBS said: “In March 2024, the headline inflation rate increased to 33.2 percent relative to the February 2024 headline inflation rate which was 31.7 percent.

“Looking at the movement, the March 2024 headline inflation rate showed an increase of 1.5 percentage points when compared to the February 2024 headline inflation rate.

“On a YoY basis, the headline inflation rate was 11.16 percentage points higher compared to the rate recorded in March 2023, which was 22.04 percent.

“This shows that the headline inflation rate (YoY basis) increased in the month of March 2024 when compared to the same month in the preceding year (i.e., March 2023).

“Furthermore, on a month-on-month basis, the headline inflation rate in March 2024 was 3.02 percent which was 0.10 percent lower than the rate recorded in February 2024 (3.12 percent).

“This means that in the month of 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.”

On food inflation the bureau said: “The food inflation rate in March 2024 was 40.01 percent on a year-on-year basis, which was 15.56 percentage points higher compared to the rate recorded in March 2023 (24.45 percent).

“The rise in Food inflation on a year-on-year basis was caused by increases in prices of the following items:

“Garri, millet, akpu uncooked fermented (which are under the bread and cereals class), yam tuber, water yam (under potatoes, yam, and other tubers class), dried fish sardine, and mudfish dried (under Fish class).

Palm oil, vegetable oil (under Oil and Fat), beef feet, beef head, liver (under meat class), coconut, watermelon (under Fruit Class), Lipton tea, Bournvita, Milo (under coffee, tea and cocoa class).

“On a month-on-month basis, the food inflation rate in March 2024 was 3.62 percent. This shows a 0.17 percentage points decrease compared to the rate recorded in February 2024 (3.79 percent).”

NBS noted that in March 2024, food inflation on a YoY basis was highest in Kogi (48.46 percent), Kwara
(46.18 percent), Akwa Ibom (45.18 percent), while Nasarawa (33.76 percent), Borno (34.28 percent) and Bauchi (34.38 percent), recorded the slowest rise in Food inflation on YoY basis.

It added: “On a Month-on-Month basis, however, March 2024 Food inflation was highest in Abia (5.17 percent), Cross River (5.14 percent), Bayelsa (4.75 percent), while Borno (1.59 percent), Yobe (2.08 percent) and Adamawa (2.12 percent) recorded the slowest rise in Food inflation on Month-on-Month basis.”

 

Leave a Comment