Nigeria’s inflation hits 33.20% amid high food pricesThe food inflation rate in March 2024 quickened to 40.01 per cent on a year-on-year basis
Inflation
The National Bureau of Statistics (NBS) announced that Nigeria’s annual inflation rate surged to 33.20% in March, up from 31.70% in February. This marks a 1.50% increase compared to the previous month. Year-on-year, the inflation rate rose by 11.16%, significantly higher than the rate recorded in March 2023, which stood at 22.04%.
On a month-on-month basis, the inflation rate in March 2024 was 3.02%, slightly lower than February’s 3.12%. This indicates a slower rate of increase in the average price level compared to the previous month.
The food inflation rate soared to 40.01% year-on-year, a sharp increase of 15.56% points from March 2023. This surge is attributed to higher prices of staples like garri, millet, and yam, as well as essential items such as palm oil and vegetable oil. On a month-on-month basis, food inflation decreased slightly to 3.62% in March from 3.79% in February.
The rise in food prices has been exacerbated by government policies like the removal of petrol subsidies. This, coupled with currency depreciation and increased forex demand, has led to record lows for the Nigerian naira across official and unofficial markets.
The inflation report highlights the contributions of various items to the overall increase in the headline index. These include food & non-alcoholic beverages (17.20%), housing, water, electricity, gas & other fuel (5.56%), clothing & footwear (2.54%), and transport (2.16%), among others.
The twelve-month average Consumer Price Index (CPI) for March 2024 shows a 27.13% increase compared to the previous twelve-month period, indicating a 6.76% rise from March 2023. This suggests a sustained upward trend in prices over the past year.
The NBS report underscores the challenges faced by many Nigerian households, as rising inflation erodes purchasing power and makes daily essentials less affordable. Despite efforts to address these issues, such as currency interventions, the root causes of inflation persist, requiring comprehensive and sustained measures.
In conclusion, Nigeria’s inflation rate continues to rise, driven primarily by surging food prices. Government interventions aim to stabilize the economy and mitigate the impact on citizens, but long-term solutions are needed to address structural issues contributing to inflationary pressures.
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