Home Economy Nigeria’s inflation rate hits 22.04%, a worrisome trend

Nigeria’s inflation rate hits 22.04%, a worrisome trend

by Business News Report

National Bureau of Statistics has said that Nigeria’s rate of change in prices of goods and services was 22.04 per cent in the Month of March 2023. NBS in its report said “in March 2023, the headline inflation rate rose to 22.04 per cent compared to February 2023 headline inflation rate which was 21.91 per cent. Looking at the trend, the March 2023 inflation rate showed an increase of 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% points higher compared to the rate recorded in March 2022 which was 15.92%. 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 contributions of items on the divisional level to the increase in the headline index are food & non-alcoholic beverages (11.42%); housing, water, electricity, gas & other fuel (3.69%); clothing & footwear (1.69%); transport (1.43%); furnishings, household equipment & maintenance (1.11%); education (0.87%); health (0.66%); miscellaneous goods & services (0.37%); restaurant & hotels (0.27%); alcoholic beverage, tobacco & kola (0.24%); recreation & culture (0.15%) and communication (0.15%).  The food inflation rate in March 2023 was 24.45% on a year-on-year basis; which was 7.25% points higher compared to the rate recorded in March 2022 (17.20%). 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. On a month-on-month basis, the food inflation rate in March 2023 was 2.07%, this was 0.16% higher compared to the rate recorded in February 2023 (1.90%). The average annual rate of food inflation for the twelve months ending March 2023 over the previous twelve months’ average was 22.72%, which was 3.50% points increase from the average annual rate of change recorded in March 2022 (19.21%). 

“However, on a month-on-month basis, the All-Items Index in March 2023 was 1.86%, which was 0.15% points higher than the rate recorded in February 2023 (1.71%). This means that in March 2023, on average, the general price level was 0.15% 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%, showing a 3.83% increase compared to 16.54% recorded in March 2022. On a year-on-year basis, in March 2023, the urban inflation rate was 23.07%, this was 6.63% points higher compared to the 16.44% recorded in March 2022. On a month-on-month basis, the urban inflation rate was 2.00% in March 2023, this was 0.15% points higher compared to February 2023 (1.85%). The corresponding twelve months average for the urban inflation rate was 21.00% in March 2023. This was 3.90% points higher compared to the 17.10% reported in March 2022. The rural inflation rate in March 2023 was 21.09% on a year-on-year basis; this was 5.67% points higher compared to the 15.42% recorded in March 2022. On a month-on-month basis, the rural inflation rate in March 2023 was 1.72%, up by 0.14% points compared to February 2023 (1.58%). The corresponding twelve months average for the rural inflation rate in March 2023 was 19.79%. This was 3.79% points higher compared to the 16.00% recorded in March 2022”. 

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