Nigeria’s Inflation Hits Six-month High

The consumer price index, which measures the rate of increase in the price of goods and services, rose to the highest level since October 2021.

The Consumer Price Index (CPI) report for February 2022, which was released on Friday by the National Bureau of Statistics (NBS), read that the inflation rose to 15.92 per cent in March 2022, amid rising food and gas prices.

The figure represents the highest rate recorded since October 2021 — and 0.22 per cent points higher than the 15.7 per cent recorded in the previous month (February 2022).

The report read that the rate is 2.25 per cent points lower compared to 18.17 per cent recorded in March 2021, indicating a slow down (year-on-year) in March 2022.

According to it, “On month-on-month basis, the headline index increased to 1.74 per cent in March 2022, this is 0.11 per cent points higher than the rate recorded in February 2022 (1.63 per cent),” the report said.

“The percentage change in the average composite CPI for the twelve months ending March 2022 over the average previous twelve months period is 16.54 per cent, this shows 0.19 per cent points decrease compare to 16.73 per cent recorded in February 2022.

“The Urban Inflation rate increased to 16.44 per cent year-on-year in March 2022 showing a decline of 2.32 per cent points from the rate recorded in March 2021 (18.76 per cent). In the same vein, the Rural Inflation increased to 15.42 per cent in March 2022 with a decrease of 2.18 per cent points from 17.60 per cent recorded in March 2021.

The core inflation rate dropped to 13.91 per cent in March from 14.01 per cent recorded in February 2022. The rise in the core index was attributed to the increase in the prices of gas, garments, cleaning, repair and hire of clothing, shoes and other footwear.

Other items, which recorded significant price increases, include clothing materials, other articles of clothing and clothing accessories, liquid fuel, fuels and lubricants for personal transport equipment and other services in respect of personal transport equipment.

The report also noted that food inflation rose to 17.2 per cent in the review month, an uptick compared to the 17.11 per cent recorded in the preceding month. This rise in the food index was caused by increases in prices of bread and cereals, food product, potatoes, yam and other tubers, fish, meat, oils and fats.