Nigeria’s inflation rate rises further to 5-month high at 15.92% in March 2022

Nigeria’s inflation rose to 15.92% in March 2022, following a similar uptick recorded in the previous month as a result of the increase in energy prices. This represents the highest rate recorded since October 2021.

This is according to the recently released Consumer Price Index report, released by the National Bureau of Statistics (NBS).

The consumer price index, which measures the rate of inflation rose by 15.92% year-on-year in March 2022, which is 0.22% points higher than the 15.7% recorded in the previous month (February 2022). On a month-on-month basis, the headline index increased by 1.74% in March 2022, compared to 1.63% increase recorded in the previous month.

Similarly, the Urban Inflation rate increased to 16.44% year-on-year in March 2022 showing a decline of 2.32% points from the rate recorded in March 2021 (18.76 percent). In the same vein, the Rural Inflation rose to 15.42% in March 2022 with a decrease of 2.18% points from 17.60% recorded in March 2021.

Food inflation

• Food inflation rose to 17.2% in the review month, an uptick compared to the 17.11% recorded in the preceding month. This rise in the food index was caused by increases in prices of Bread and cereals, food product, Potatoes, yam and other tuber, Fish, Meat, Oils and fats.
• On a month-on-month basis, the food sub-index increased to 1.99% in March 2022, this was up by 0.12% points from 1.87% points recorded in February 2022. The average annual rate of change of the Food sub-index for the twelve-month period ending March 2022 over the previous twelve-month average was 19.21%, a 0.48% points decrease from the average annual rate of change recorded in February 2022 (19.69 .36).

Core inflation

• On the other hand, the core inflation rate dropped to 13.91% in March from 14.01% recorded in February 2022. The rise in the core index was attributed to the increase in the prices of Gas, Garments, Cleaning, repair and hire of clothing, shoes and other footwear.
• Other items, which recorded significant increase in price include clothing materials, other articles of clothing and clothing accessories, Liquid Fuel, Fuels and lubricants for personal transport equipment and other services in respect of personal transport equipment.

States with highest inflation rate

• In March 2022, All Items Inflation on year-on-year basis was highest in Cross River (18.42%) followed by Kogi with 18.18% and Gombe with 18.09%, while Kwara recorded the slowest rise with 14.03% followed by Osun (14.14%) and Ogun (14.22%).
• In terms of food inflation, Kogi state had the highest rate of increase at 22.21%, followed by Cross River recording 19.86% and Kwara (19.53%), while Sokoto recorded the slowest rise in year-on-year food inflation with 14.04% followed by Kaduna and Rivers with 14.66% and 14.81% respectively.