Nigeria’s annual inflation rate rose for the first time since the data was rebased in January, advancing even before the fallout from a global trade war is felt.
Annual consumer prices rose 24.2% in March, compared with 23.2% a month earlier, according to data published by the National Bureau of Statistics on Tuesday. Prices rose 1.1% in the month.
The March inflation has however defied analysts’ projections, who mostly predicted a moderation in inflation.
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According to other analysts, the uptick may be as a result of renewed FX pressures, amid heightened global risk-off sentiment that triggered net FPI outflows and increased dollar demand in the local market.
According to the analysts, “Naira weakened by 2.4 percent month-on-month over the period. In addition, domestic PMS prices rose across the country, following the temporary suspension of the Naira-for-crude swap arrangement.”
Oyo, Kaduna, Kebbi record highest food inflation in March
Core inflation, which excludes volatile food and energy prices, continued its upward trend, climbing to 24.4 per cent year-on-year in March from 23.0 in February.
In contrast, food inflation eased to 21.8 per cent in March, down from 23.5 per cent in the previous month.
On a month-on-month basis, the price pressures were noticeable, with headline, rising by 3.9 per cent, higher than the 2.0 per cent recorded in February.
