In March 2023, the headline inflation rate in Nigeria rose to 22.04% compared to February 2023 headline inflation rate which was 21.91%.
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The trend as seen in the Consumer Price Index and Inflation report for March 2023 released by the National Bureau of Statistics shows that the March 2023 inflation rate increased by 0.13% points when compared to February 2023 headline inflation rate.
On a year-on-year basis, the headline inflation rate was 6.13% points higher compared to the rate recorded in March 2022 which was 15.92%. This shows that the headline inflation rate (year-on-year basis) increased in March 2023 when compared to the same month in the pre-ceding year (i.e., March 2022).
The contributions of items on the divisional level to the increase in the headline index are food & non-alcoholic beverages (11.42%); housing, water, electricity, gas & other fuel (3.69%); clothing & footwear (1.69%); transport (1.43%); furnishings, household equipment & maintenance (1.11%); education (0.87%); health (0.66%); miscellaneous goods & services (0.37%); restaurant & hotels (0.27%); alcoholic beverage, tobacco & kola (0.24%); recreation & culture (0.15%) and communication (0.15%).
However, on a month-on-month basis, the All-Items Index in March 2023 was 1.86%, which was 0.15% points higher than the rate recorded in February 2023 (1.71%). This means that in March 2023, on average, the general price level was 0.15% higher relative to February 2023.
The percentage change in the average CPI for the twelve months period ending March 2023 over the average of the CPI for the previous twelve months period was 20.37%, showing a 3.83% increase compared to 16.54% recorded in March 2022.
On a year-on-year basis, in March 2023, the urban inflation rate was 23.07%, this was 6.63% points higher compared to the 16.44% recorded in March 2022. On a month-on-month basis, the urban inflation rate was 2.00% in March 2023, this was 0.15% points higher compared to February 2023 (1.85%). The corresponding twelve months average for the urban inflation rate was 21.00% in March 2023. This was 3.90% points higher compared to the 17.10% reported in March 2022.
The rural inflation rate in March 2023 was 21.09% on a year-on-year basis; this was 5.67% points higher compared to the 15.42% recorded in March 2022. On a month-on-month basis, the rural inflation rate in March 2023 was 1.72%, up by 0.14% points compared to February 2023 (1.58%). The corresponding twelve months average for the rural inflation rate in March 2023 was 19.79%. This was 3.79% points higher compared to the 16.00% recorded in March 2022.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
