In March 2024, Nigeria’s headline inflation rate increased to 33.20 percent, relative to the headline inflation rate in February 2024, which was 31.70 percent.
Data released by the National Bureau of Statistics (NBS) on Monday showed that food inflation was 40.01 percent in March 2024.
Explaining how Food prices pushed inflation up in March 2024, the NBS said, “The Food inflation rate in March 2024 was 40.01 percent on a year-on-year basis, which was 15.56 percent higher compared to 24.45 percent recorded in March 2023.
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 Sadine, Mudfish Dried (under Fish class), Palm Oil, Vegetable Oil (under Oil and Fat), Beef Feet, Beef Head, Liver (under Meat class), Coconut, Water Melon (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, which
shows a 0.17 percent decrease compared to 3.79 percent recorded in February 2024.
“The fall in food inflation on a month-on-month basis was caused by a fall in the rate of increase in the average prices of Guinea corn flour, plantains flour, etc. (under Bread and Cereals class), yam, Irish potato, coco yam (under Potatoes, Yam, & Other Tubers class), titus fish, mudfish dried (under Fish class), Lipton, Bournvita, and Ovaltine (under Coffee, Tea, and Cocoa class).
“The average annual rate of food inflation for the twelve months ending March 2024 over the previous twelve-month average was 31.40 percent, which was an 8.69% point increase from the average annual rate of change recorded in March 2023 (22.72 percent).”
Looking at the movement, the March 2024 headline inflation rate showed an increase of 1.50 percent points when compared to the February 2024 headline inflation rate.
According to the NBS, on a year-on-year basis, the headline inflation rate was 11.16 percent higher compared to 22.04 percent recorded in March 2023.
This shows that the headline inflation rate (on a year-on-year basis) increased in the month of March 2024 when compared to the same month in the preceding year.
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 3.12 percent recorded in February 2024.
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.
The NBS explained that the percentage change in the average CPI for the 12-month period ending March 2024 over the average of the CPI for the previous 12-month period was 27.13 percent, showing a
6.76 percent increase compared to 20.37 percent recorded in March 2023.
The Urban inflation rate was 35.18 percent, on a year-on-year basis, in the month of March 2024, indicating 12.11 percent higher compared to the 23.07 percent recorded in March 2023.
However, on a month-on-month basis, the Urban inflation rate was 3.17 percent in March 2024; this was 0.0001 percent points marginally and insignificantly lower compared to 3.17 percent recorded in
February 2024.
The corresponding 12-month average for the Urban inflation rate was 28.96 percent in March 2024, showing 7.96 percent higher compared to the 21.00 percent reported in March 2023.
According to the NBS, rural inflation rate in March 2024 was 31.45 percent on a year-on-year basis, indicating 10.37 percent increase compared to the 21.09 percent recorded in March 2023.
On a month-on-month basis, the Rural inflation rate in March 2024 was 2.87 percent, down by 0.20 percent points compared to 3.07 percent recorded in February 2024.
The corresponding 12-month average for the Rural inflation rate in March 2024 was 25.50 percent; this was 5.71 percent higher compared to the 19.79 percent recorded in March 2023.
“All items less farm produces and energy,” or Core inflation, which excludes the prices of volatile agricultural produces and energy, stood at 25.90% in March 2024 on a year-on-year basis, up by 6.26 percent when compared to the 19.63 percent recorded in March 2023.
The highest increases were recorded in prices of the following items: Bus Journey within the city (under
Passenger Transport by Road class), Actual and Imputed Rentals for Housing, Consultation Fee of a medical doctor (under Medical Services class), and pharmaceutical products, etc.
On a month-on-month basis, the Core Inflation rate was 2.54 percent in March 2024. It stood at 2.17 percent in February 2024, an increase of 0.37 percent.
The average twelve-month annual inflation rate was 22.26 percent for the twelve months ending March 2024; this was 5.04 percent points higher than the 17.22% recorded in March 2023.
“In analysing price movements under this section, it should be noted that CPI is weighted by consumption and expenditure patterns that differ across states and locations. Accordingly, the weight assigned to a particular food or non-food item may differ from state to state, making interstate comparisons of consumption baskets inadvisable and potentially misleading,” the NBS stated.
The NBS informed that in “March 2024, the All Items inflation rate on a year-on-year basis was highest in Kogi (39.97%), Bauchi (38.34%), Kwara (38.10%), and Oyo (37.29%), while Borno (25.78%), Benue/Taraba (28.12%), and Katsina (28.32%) recorded the slowest rise in headline inflation on a year-on-year basis. On a month-on-month basis, however, March 2024 recorded the highest increases in Zamfara (3.90%), Abia (3.89%), and Ondo (3.75%), while Borno (1.46%), Yobe (1.84%), and Adamawa (1.85%) recorded the slowest rise in month-on-month inflation.
“In March 2024, Food inflation on a Year-on-Year basis was highest in Kogi (48.46%), Kwara (46.18%), Akwa Ibom (45.18%), while Nasarawa (33.76%), Borno (34.28%) and Bauchi (34.38%), recorded the slowest rise in Food inflation on Year-on-Year basis. On a month-on-month basis, however, March 2024, Food inflation was highest in Abia (5.17%), River (5.14%), Bayelsa (4.75%), while Borno (1.59%), Yobe (2.08%) and Adamawa (2.12%) recorded the slowest rise in Food inflation on Month-on-Month basis”.
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