Inflation rate gallops to 22.04%, up 0.13% MoM
By Jeph Ajobaju, Chief Copy Editor
Headline inflation rate jumped from 21.91 per cent in February to 22.04 per cent
in March, a rise of 0.13 percentage points month-on-month (MoM).
The rate in March 2023 was 6.13 per cent higher than the 15.92 per cent in March 2022 or by 15.92 per cent year-on-year (YoY), according to the National Bureau of Statistics (NBS) Consumer Price Index (CPI) and Inflation Report for March just released in Abuja.
“This shows that the headline inflation rate (year-on-year basis) increased in March 2023 when compared to the same period in March 2022,” the report explained.
It said the contributions of items on the divisional level to the increase are food and non-alcoholic beverages at 11.42 per cent and housing, water, electricity, gas and other fuel at 3.69 per cent.
Others are clothing and footwear at .69 per cent, transport at 1.43 per cent, furnishings, household equipment and maintenance at 1.11 per cent ,and education at 0.87 per cent and health at 0.66 per cent.
“Miscellaneous goods and services at 0.37 per cent; restaurant and hotels at 0.27 per cent; alcoholic beverage, tobacco and kola at 0.24 per cent; recreation and culture at 0.15 per cent and communication at 0.15 per cent.”
The percentage change in the All-Items Index in March 2023 was 1.86 per cent MoM.
The NBS said “this indicates a 0.15 per cent increase compared to the 1.71 per cent recorded in February 2023.
“This means that in March 2023, on average, the general price level was 0.15 per cent higher relative to February 2023.”
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Consumer Price Index
The percentage change in the average CPI for the 12 months ending March 2023 over the average of the CPI for the previous 12 months period was 20.37 per cent, according to the NBS, as reported by the News Agency of Nigeria (NAN) and published by The PUNCH.
“This indicates a 3.83 per cent increase compared to the 16.54 per cent recorded in March 2022.”
Increases were recorded in all Classification of Individual Consumption by Purpose (COICOP) divisions that yielded the headline index.
Food inflation rate in March 2023 was 24.45 per cent YoY, 7.25 per cent higher against 17.20 per cent in March 2022
“The rise in food inflation is caused by increases in prices of bread and cereals, potatoes, yams and other tubers, and oil and fat, fish, vegetable, fruits, meat, and spirits,” the NBS added.
Food inflation rate in March 2023 was 2.07 per cent, a 0.16 per cent rise versus 1.90 per cent in February.
The “All items less farm produce’’ or Core inflation, which exclude the prices of volatile agricultural produce,was 19.86 per cent in March 2023.
“This increased by 5.94 per cent compared to 13.91 per cent recorded in March 2022,” the report explained.
“On a month-on-month basis, the core inflation rate was 1.84 per cent in March 2023, which was a 0.78 per cent rise compared to what it stood at in February 2023 at 1.06 per cent.”
The highest price increases were for gas, passenger transport by air, liquid fuel, fuels, lubricants for personal transport equipment, and vehicle spare parts.
“Others are maintenance and repair of personal transport equipment and solid fuel, medical services, and passenger transport by road, among others.
“The average 12-month annual inflation rate was 17.41 per cent for the 12 months ending March 2023, this was 3.85 per cent points higher than the 13.56 per cent recorded in March 2022.”
The report said urban inflation rate was 23.07 per cent in March 2023, which was 6.63 per cent higher against 16.44 per cent in March 2022.
“On a month-on-month basis, the urban inflation rate was 2.00 per cent in March 2023, representing a 0.15 per cent rise compared to February 2023 at 1.85 per cent.”
The corresponding 12-month average for the urban inflation rate was 21.00 per cent in March 2023.
“This was 3.90 per cent higher compared to the 17.10 per cent reported in March 2022.”
Rural inflation rate was 21.09 per cent in March 2023, which was 5.67 per cent higher compared with 15.42 per cent in March 2022.
“On a month-on-month basis, the rural inflation rate in March 2023 was 1.72 per cent, which increased by 0.14 per cent compared to February 2023 at 1.58 per cent.”
According to the NBS, the corresponding 12-month average for the rural inflation rate in March 2023 was 19.79 per cent, which was 3.79 per cent higher versus 16.00 per cent in March 2022.
Inflation rate in states
The report shows the All Items Inflation rate in March 2023 was highest in Ondo at 25.38 per cent, followed by Bayelsa (24.80 per cent), and Lagos (24.66 per cent).
The slowest rise in headline inflation was in Borno at 10.18 per cent, followed by Cross River (19.24 per cent), Sokoto (19.24 per cent), and Benue (20.01 per cent).
All items inflation rate MoM was highest in Bayelsa (2.58 per cent); next, Nasarawa (2.54 per cent), and Lagos (2.41 per cent).
“Anambra at 1.03 per cent followed by Ebonyi at 1.14 per cent and Zamfara at 1.27 per cent recorded the slowest rise in month-on-month inflation.”
The report said food inflation YoY in March 2023 was highest in Kwara at 28.48 per cent, followed by Ondo (28.22 per cent), and Lagos (27.92 per cent).
“Sokoto at 18.99 per cent, followed by Zamfara at 20.57 per cent and Plateau at 21.38 per cent recorded the slowest rise in food inflation on a year-on-year basis.’’
Food inflation was highest in Bayelsa at 3.11 per cent MoM in March 2023, followed by Rivers at 3.00 per cent, and Ondo at 2.98 per cent.
“With Bauchi at 1.03 per cent, followed by Zamfara at 1.08 per cent and Ogun at 1.13 per cent recorded the slowest rise on month-on-month inflation.”