Inflation Surges to 12.8% in March As Forex and Fuel Scarcity Persist

Nigeria’s inflation rate raced to 12.8 per cent in March, from 11.4 per cent recorded in February, the National Bureau of Statistics, NBS, reported on Tuesday, April 12.

The Bureau said the latest 1.4 per cent points increase in inflation rate from rates recorded in February reflected “an increase in the prices of goods and services across the nation to a year-on-year high last recorded in July of 2012.”

Analysis showed that the higher price level was reflected in faster increases across all divisions which contributed to the inflation index with the exception of the restaurants and hotels division.

The report stated: “Transportation costs, the planting season, and foreign exchange movements created significant upward pressures on the food index in March.”

The food index increased by 12.7 per cent, up by 1.4 per cent points from rates recorded in February as all major food groups which contribute to the food sub-index increased at a faster pace.

“Imported items as well as other domestic shocks continued to have ripple effects across many divisions that contribute to the Core,” the report said.

The index increased by 12.2 per cent in March, roughly 1.1 per cent points from rates recorded in February.

“While exhibiting a slower increase in the on a month-on-month basis, the Headline Index still recorded a notable increase in March relative to rates recorded in previous years,” the report revealed.

The index increased by 2.2 per cent, in March, marginally lower from 2.3 per cent recorded in February. Almost half of all divisions that contribute to the index increased, albeit at a slower pace.