Nigeria records highest inflation rate in four years

The Consumer Price Index (CPI), which tracks inflation, increased to 18.17 percent (year-on-year) in March, indicating that Nigeria’s inflation rate has continued to grow.

This is 0.82 percentage points higher than the February average (17.33 percent), and it is the highest rate in four years, dating back to April 2017.

The new figure was revealed in the National Bureau of Statistics’ CPI March 2021 survey, which was published on Thursday.

According to the survey, increases were seen in all divisions of the COICOP (Classification of Individual Consumption by Purpose) that generated the Headline index.

The Headline index increased 0.02 percent points month over month to 1.56 percent in March, suggesting a 0.02 percent point rise over the previous month’s average of 1.54 percent.

The percentage change in the average composite CPI for the twelve months ending March 2021 over the previous twelve months’ average was 14.55 percent, up 0.50 percent from February’s 14.05 percent.

Similarly, the annual rate of urban inflation rose to 18.76 percent in March 2021, up from 17.92 percent in February.

The rural inflation rate, on the other hand, has risen to 17.60% in March 2021, up from 16.77% the previous month.

The urban index increased by 0.02 percent month over month to 1.60 percent in March, up from 1.50 percent the previous month. The rural index increased by 0.02 percent to 1.52 percent in March, up from 1.50 percent the previous month.

In March, the corresponding twelve-month year-on-year average percentage change for the urban index was 15.15 percent, according to the NBS survey.

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This was higher than the 14.66 percent recorded in February, according to the agency, while the corresponding rural inflation rate in March was 13.99 percent, up from 13.48 percent in February.

The composite food index increased to 22.95 percent in March from 21.79 percent in February, according to the study.

The food sub-index rose by 0.01 percent points month over month to 1.90 percent in March, up from 1.89 percent in February.

“This rise in the food index was caused by increases in prices of bread and cereals, potatoes, yam and other tubers, meat, vegetable, fish, oils and fats, and fruits.

“The average annual rate of change of the Food sub-index for the twelve-month period ending March 2021 over the previous twelve-month average was 17.93 per cent, 0.68 percent points from the average annual rate of change recorded in February 2021 (17.25) percent,” the report said.

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