Inflation Rate Rises To 22.04 At End Of Q1, 2023

Nigeria’s annual inflation rate rose to 22.04 per cent as contained in the latest Consumer Price Index (CPI) report released on Saturday by the National Bureau of Statistics (NBS).

The NBS said the March inflation rate showed an increase of 0.13 per cent points when compared to 21.91 per cent in the February 2023 headline inflation rate.

The March increase comes across as the third consecutive surge in the country’s inflation figure since the year began.

Nigeria has been faced with an increasing inflation rate, slow economic growth and the high unemployment rate over time.

This constant increase in the inflation rate has prompted the Central Bank of Nigeria (CBN) to increase the interest rates to their highest level in nearly two decades.

The CBN in March raised its benchmark lending rate to 18 per cent.

Citing the NBS, the food inflation rate quickened to 24.46 per cent in March from 24.35 per cent in the previous month

The report noted that “the headline inflation rate was 6.13 per cent higher this March compared to the 15.92 percent recorded in March 2022”.

However, it said on a month-on-month basis, the All-Items Index was 1.86 per cent, which was 0.15 per cent points higher than the rate recorded in February 2023 1.71 per cent.

This means that in March 2023, on average, the general price level was 0.15 per cent higher relative to February 2023.

NBS also said items like food and non-alcoholic beverages contributed largely, on the divisional level, to the increase in the headline.

“The contributions of items on the divisional level to the increase in the headline index are food and non-alcoholic beverages 11.42 per cent housing, water, electricity, gas, and other fuel at 3.69 per cent.

“Also, clothing and footwear 1.69 per cent, transport 1.43 per cent, furnishings, household equipment and maintenance 1.11 per cent, education 0.87 per cent and health stood at 0.66 per cent” the NBS said.

Recall that the International Monetary Fund (IMF) during the World Bank meeting, disclosed that Inflation is a global threat now to economic growth, and Nigeria is on the receiving end.