Nigeria: Inflation Moderates to 11.25% in March

By Dipo Olowookere

The National Bureau of Statistics (NBS) on Tuesday said inflation rate in Nigeria eased to 11.25 percent in the month of March 2019 from 11.31 percent recorded in the month of February 2019.

In its report this morning, the stats office said the consumer price index (CPI), which measures inflation, moderated year-on-year by 0.06 percent in the period under review.

However, the NBS said on month-on-month basis, the headline index rose by 0.79 percent in March 2019, showing 0.06 percent rate higher than the rate recorded in February 2019, which was at 0.73 percent.

It was explained that the percentage change in the average composite CPI for the 12 months period ending March 2019 over the average of the CPI for the previous 12 months period was 11.40 percent, showing 0.16 percent point from 11.56 percent recorded in February 2019.

Furthermore, the urban inflation rate increased year-on-year by 11.54 percent in March 2019 from 11.59 percent recorded in February 2019, while the rural inflation rate increased by 10.99 percent in March 2019 from 11.05 percent in February 2019.

On a month-on-month basis, the urban index rose by 0.81 percent in March 2019, up by 0.05 from 0.76 percent recorded in February 2019, while the rural index also rose by 0.77 percent in March 2019, up by 0.06 from the rate recorded in February 2019 (0.71) percent.

The corresponding 12-month year-on-year average percentage change for the urban index is 11.78 percent in March 2019. This is less than 11.95 percent reported in February 2019, while the corresponding rural inflation rate in March 2019 is 11.08 percent compared to 11.23 percent recorded in February 2019.

In the report, the stats office stated that the composite food index rose by 13.45 percent in March 2019 compared to 13.47 percent in February 2019.

This rise in the food index was caused by increases in prices of Bread and cereals, Meat, Fish, Potatoes, Yam and other tubers, Oils and fats, and Soft drinks, Vegetables, and Fruits.

On month-on-month basis, the food sub-index increased by 0.88 percent in March 2019, up by 0.06 percent points from 0.82 percent recorded in February 2019.

The average annual rate of change of the Food sub-index for the twelve-month period ending March 2019 over the previous twelve-month average was 13.42 percent, 0.20 percent points from the average annual rate of change recorded in February 2019 (13.62) percent.