Nigeria’s inflation rate increased to 33.2% for the month of March 2024 driven by rising cost of foods in the country, according to the latest data from the National Bureau of Statistics (NBS).
The inflation growth represents 1.5% points increase from the 31.7% recorded in February 2024. The increase in the inflation rate in March was slower compared to the 1.80% increase recorded in February 2024.
Inflation in March was driven by increase in food and beverages coupled with energy and housing costs.
On a year-on-year basis, the headline inflation rate increased by 11.16% from 22.04% in March 2023. Additionally, the headline inflation rate for March 2024 was 3.02%, a decrease of 0.10% from February 2024, when it was 3.12%.
Food inflation
In March 2024, the food inflation rate reached 40.01% year-on-year, marking an increase of 15.56 percentage points from 24.45% in March 2023. This surge in food inflation can be attributed to rising prices for items such as garri, millet, and akpu uncooked fermented (all part of the Bread and Cereals category), as well as yam tuber, water yam, and others.
On a month-on-month basis, the food inflation rate in March 2024 stood at 3.62%, showing a decline of 0.17% from February 2024, when it was 3.79%.
For the twelve months ending in March 2024, the average annual food inflation rate was 31.40%, an increase of 8.69% points from the 22.72% recorded in the previous twelve months ending in March 2023.
Urban inflation
Urban inflation in March reached 35.18% year-on-year, a rise of 12.11% from the 23.07% recorded in March 2023. Month-over-month, the urban inflation rate for March 2024 was 3.17%, showing a marginal decrease of 0.0001% point from February 2024, which also stood at 3.17%.
Rural inflation
The rural inflation rate for March 2024 was 31.45% on a year-on-year basis, up 10.37 percentage points from 21.09% in March 2023. Month-over-month, the rural inflation rate decreased by 0.20% points to 2.87% in March 2024 from 3.07% in February 2024.
Core inflation
Core inflation, which excludes the prices of volatile agricultural products and energy, was 25.90% in March 2024 on a year-on-year basis, an increase of 6.26% from 19.63% in March 2023.
The month-on-month core inflation rate in March 2024 was 2.54%, up from 2.17% in February 2024. The average annual inflation rate over the twelve months ending in March 2024 was 22.26%, 5.04% points higher than the 17.22% recorded in March 2023.
