Nigeria records highest inflation rate in almost two years

Nigeria’s headline inflation rate for March 2020 rose marginally by 0.06 percent points higher than the 12.20 percent rate recorded in February.

The National Bureau of Statistics (NBS) disclosed this in its report released on Tuesday.

According to the agency, the Consumer Price Index (CPI), which measures inflation stands at 12.26 per cent (year-on-year) – the highest in 23 months.

Similarly, the composite food index rose to 14.98 per cent, largely driven by increase in basic food prices.

The ‘All items less farm produce,’ also known as core inflation, which excludes the prices of volatile agricultural produce, stood at 9.73 per cent in March 2020.

This represents an increase of 0.3 per cent when compared with the 9.43 per cent recorded in February 2020.

The urban inflation rate also rose to 12.93 per cent, while the rural inflation rate moved up to 11.64 per cent, year-on-year in the previous month.

While gathering the data, the NBS noted the lockdown ordered by President Muhammadu Buhari in Abuja, Lagos and Ogun States, to curb the spread of coronavirus in the country.

It also took note of the several disruptions to normal economic activities in several other states which began in April but stated that they would not have any major impact on the March 2020 Inflation which the report focused on.

“The corresponding twelve-month year-on-year average percentage change for the urban index was 12.15 per cent in March 2020 (this is higher than 12.03 per cent reported in February 2020), while the corresponding rural inflation rate in March 2020 was 11.14 per cent compared to 11.09 per cent recorded in February 2020,” the report read.