The Nigerian economy is witnessing a slowing down of monthly inflation rate increase according to the consumer price index report for March 2024 released by the National Bureau of Statistics on Monday.
The consumer price index (CPI) report, which measures the rate of change in prices of goods and services, shows that the March, 2024 headline inflation rate increased by 3.02%, which is lower than the 3.12% increase witnessed in February, 2024.
Also, the food inflation rate slowed down marginally in March, 2024 to 3.62% from the 3.79% monthly increase recorded in February, 2024. This points to an easing in inflationary pressure.
According to the CPI report by the NBS, the March headline inflation rate showed an increase of “1.50% points when compared to the February 2024 headline inflation rate.
“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%,” the report disclosed.
“This shows that the headline inflation rate (year-on-year basis) increased in the month of March 2024 when compared to the same month in the preceding year (i.e., March 2023).
“Furthermore, on a month-on-month basis, the headline inflation rate in March 2024 was 3.02%, which was 0.10% lower than the rate recorded in February 2024 (3.12%).
The NBS report further revealed that the food inflation rate in March 2024 was 40.01% on a year-on-year basis – which is an increase of 15.56% points when compared to the 24.45% rate recorded in March 2023.
NBS said the rise in food inflation on a year-on-year basis was caused by an increase in prices of garri, millet, bread and cereal, yam, dried fish, meat, and fruits.
“On a month-on-month basis, the Food inflation rate in March 2024 was 3.62% which shows a 0.17% decrease compared to the rate recorded in February 2024 (3.79%),” the NBS said.
“The fall in food inflation on a month-on-month basis was caused by a fall in the rate of increase in the average prices of Guinea corn flour, Plantain Flour, etc (under Bread and Cereals class), Yam, Irish Potatoe, Coco Yam (under Potatoes, Yam & Other Tubers class), Titus fish, Mudfish Dried (under Fish class), Lipton, Bournvita, Ovaltine (under Coffee, Tea, and Cocoa class).
“The average annual rate of Food inflation for the twelve months ending March 2024 over the previous twelve-month average was 31.40%, which was 8.69% points increase from the average annual rate of change recorded in March 2023 (22.72%).”
The report also added that Kogi, Kwara, and Akwa Ibom states spent more on food in March than other states on a year-on-year basis.
“In March 2024, food inflation on a year-on-year basis was highest in Kogi (48.46%), Kwara (46.18%), and Akwa Ibom (45.18%), while on a month-on-month basis, however, March 2024 food inflation was highest in Abia (5.17%), Cross River (5.14%), and Bayelsa (4.75%),” NBS added.
On the other hand, states with the slowest rise in food inflation on a year-on-year basis are Nasarawa (33.76 percent), Borno (34.28 percent), and Bauchi (34.38 percent).
Also, Borno (1.59 percent), Yobe (2.08 percent) and Adamawa (2.12 percent) recorded the slowest rise in food inflation on a month-on-month basis.
This months CPI report is a welcome relief to the economy and comes amid a dramatic appreciation by the Naira in both official and parallel markets of the foreign exchange market. The Naira has been voted by Goldmann Sachs as world’s best performing currency in April, 2024. It is anticipated that in the coming weeks and months both headline inflation its major driver – food inflation will begin a downward climb as commodity prices reduce.