Nigeria’s inflation rate hits 15.92% as price of food stuff rises

NEWS DIGEST – The National Bureau of Statistics, NBS, said inflation rate rose to 15.92 percent in March 2022, representing a 0.22 percent points rise when compared to 15.7 per cent recorded in February 2022.

The bureau also said that the composite food index rose year-on-year (YoY) by 0.09 percent points to 17.20 percent in March, 2022 from 17.11 per cent in February 2022.

In its Consumer Price index (CPI) released today, the bureau said the rise in food index was due to increases in prices of bread and cereals, food product, potatoes, yam and other tuber, fish, meat, oils and fats.

NBS said:”In March 2022, the CPI which measures inflation increased to 15.92 percent on YoY basis. This is 2.25 percent points lower compared to 18.17 percent, the rate recorded in March 2021.

“This means that the headline inflation rate slowed down in March 2022 when compared to the same month in the previous year. I

“Increases were recorded in all COICOP divisions that yielded the Headline index. “On month-on-month (MoM) basis, the Headline Index increased to 1.74 percent in March 2022, this is 0.11 percent points higher than the rate recorded in February 2022 (1.63 percent).

“The Urban Inflation rate increased to 16.44 percent YoY in March 2022 showing a decline of 2.32 percent points from the rate recorded in March 2021 (18.76 percent).

“In the same vein, the Rural Inflation increased to 15.42 percent in March 2022 with a decrease of 2.18 percent points from 17.60 percent recorded in March 2021.

“On a MoM basis, the Urban Index rose to 1.76 percent in March 2022, this was up by 0.11 percent points from the rate recorded in February 2022 (1.65 percent). “The Rural Index rose to 1.73 percent in March 2022, with 0.12 percent point increase from 1.61 percent recorded in February 2022.”

On food index, the bureau said:”The composite food index rose to 17.20 percent in March, 2022 compared to 22.95 percent recorded in March, 2021. This rise in the food index was caused by increases in prices of Bread and cereals, Food product n.e.c, Potatoes, yam and other tuber, Fish, Meat, Oils and fats.

“On MoM basis, the food sub-index increased to 1.99 percent in March 2022, this was up by 0.12 percent points from 1.87 percent points recorded in February 2022.”

The increase in March inflation corresponds with analysts projections of continuous pressure in headline inflation in coming months.

In their February inflation outlook, analysts at Cowry Asset Management Limited said:”Cowry Research expects to see increased inflationary pressure in the coming months as external inflationary pressures on commodities, arising from the geopolitical conflict between Russia and Ukraine, find expression in prices of local goods and services through the rising cost of imported soft commodities.

“It has become imperative that Nigeria delinks itself from this sort of pressure by becoming more self-sufficient in the production and consumption of local substitutes.”