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Nigeria’s Inflation Skyrockets To 33.20% In March 2024

According to the bureau, the headline inflation rate for March showed a 1.50% point increase compared to February 2024



NBS Report Shows Nigeria's Inflation Skyrockets To 33.20% In March 2024

Prices in Africa’s largest economy, Nigeria, remain on the high side as the nation’s inflation rate quickened to 33.20% in March from 31.70% reported in February, News About Nigeria reports.

The Consumer Price Index (CPI), which measures inflation in an economy, revealed that increases were recorded across the board but Food & Non-Alcoholic Beverages, Housing, Water, Electricity. Gas & Other Fuel and Clothing & Footwear increased the most at 17.20%, 5.56% and 2.54%, respectively.

Rising economic uncertainties amid a series of policy changes have thrown Nigeria’s economy into chaos since President Bola Ahmed Tinubu was sworn in in 2023.

The president announced an end to subsidies and immediately embarked on a journey to unify the nation’s exchange rate, which eventually spiraled out of control to a record N1,800 against the United States Dollar before moderating to slightly above N1,000.

The increase from N660/USD to N1,800 plummeted businesses, new job creation, consumer spending, and forced many Nigerians to change the way they live.

This was evident in food inflation as it rose to 40.01% in March, the highest ever recorded in the country.

“On a year-on-year basis, the headline inflation rate was 11.16% points higher compared to the rate recorded in March 2023, which was 22.04%”, stated the National Bureau of Statistics (NBS) report released on Monday.

Further analysis of the data showed food inflation in March 2024 surged by 15.56 percent on a year-on-year basis when compared to the 24.45 percent rate recorded in March 2023.

This increase was attributed to rising prices of essential food items such as garri, millet, bread and cereals, yam, dried fish, meat, and fruits.

On a month-on-month basis, however, food inflation saw a slight moderation to 3.62% in March 2024 from 3.79% in February 2024.

The decline was primarily driven by lower price increases in items such as Guinea corn flour, plantain flour, yam, Irish potato, coco yam, fish, and beverages.

The report also shed light on regional differences, noting that Kogi, Kwara, and Akwa Ibom states experienced the highest food inflation rates on a year-on-year basis in March 2024.

Nasarawa, Borno, and Bauchi recorded the slowest rise in food inflation.

In terms of month-on-month changes, Abia, Cross River, and Bayelsa states saw the highest food inflation rates, while Borno, Yobe, and Adamawa experienced the slowest rises.