Nigeria’s inflation rate rose to 22.04 per cent in March 2023, the highest since 2009, according to a recent Consumer Price Index report released by the National Bureau of Statistics (NBS).
In the report, inflation in the country increased by 0.13 per cent points when compared to February 2023 headline inflation rate.
On a year-on-year basis, the headline inflation rate was 6.13 per cent points higher compared to the rate recorded in March 2022 which was 15.92 per cent.
This shows that the headline inflation rate (year-on-year basis) increased in March 2023 when compared to the same month in the preceding year (i.e., March 2022).
The level of inflation continues to rise despite the Central Bank Nigeria’s monetary policy tightening over the last year. In February, Nigeria’s central bank increased its benchmark monetary policy rate to 18 per cent.
However, the continuous rise in inflation suggests key structural challenges remain in the Nigerian economies, especially in areas like food & non-alcoholic beverages, housing, water, electricity, and petrol.
NBS disclosed that the contributions of items on the divisional level to the increase in the headline index are food & non-alcoholic beverages (11.42 per cent); housing, water, electricity, gas & other fuel (3.69 per cent); clothing & footwear (1.69 per cent); transport (1.43 per cent); furnishings, household equipment & maintenance (1.11 per cent); education (0.87 per cent).
Others are health (0.66 per cent); miscellaneous goods & services (0.37 per cent); restaurant & hotels (0.27 per cent); alcoholic beverage, tobacco & kola (0.24 per cent); recreation & culture (0.15 per cent) and communication (0.15 per cent).
However, on a month-on-month basis, the All-Items Index in March 2023 was 1.86 per cent, which was 0.15 per cent points higher than the rate recorded in February 2023 (1.71 per cent).
This means that in March 2023, on average, the general price level was 0.15 per cent higher relative to February 2023.
The percentage change in the average CPI for the twelve months period ending March 2023 over the average of the CPI for the previous twelve months period was 20.37 per cent, showing a 3.83 per cent increase compared to 16.54 per cent recorded in March 2022.
Also NBS reveals that the food inflation rate in March 2023 was 24.45 per cent on a year-on-year basis; which was 7.25 per cent points higher compared to the rate recorded in March 2022 (17.20 per cent).
The rise in food inflation on- year on year basis was caused by increases in prices of Oil and fat, Bread and cereals, Potatoes, Yam and other tubers, Fish, Fruits, Meat, Vegetables, and Spirits.
