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Nigeria’s inflation price has risen to 22.04 per cent within the month of March from 21.91 per cent in February 2023, the Nationwide Bureau of Statistics (NBS) mentioned, yesterday, disclosing it’s the third consecutive rise in inflation this yr.
The inflation price information report launched NBS confirmed a rise of 0.13 per cent factors when in comparison with February 2023 headline inflation price.
In accordance with the report: “On a year-on-year foundation, the headline inflation price was 6.13 per cent factors larger in comparison with the speed recorded in March 2022 which was 15.92 per cent.
“This exhibits that the headline inflation price (year-on-year foundation) elevated in March 2023 when in comparison with the identical month within the previous yr (March 2022).
“Nonetheless, on a month-on-month foundation, the all-items index in March 2023 was 1.86 per cent, which was 0.15 per cent factors larger than the speed recorded in February 2023 (1.71 per cent),” NBS mentioned.
In accordance with the report, in March 2023, on common, the overall worth stage was 0.15 per cent larger relative to February 2023. NBS additionally mentioned that gadgets like meals and non-alcoholic drinks contributed largely on the divisional stage to the rise within the headline.
“The contributions of things on the divisional stage to the rise within the headline index are meals and non-alcoholic drinks (11.42 p.c); housing, water, electrical energy, gasoline, and different gas (3.69 p.c),” the company mentioned.
“Clothes and footwear (1.69 per cent); transport (1.43 per cent); furnishings, family gear and upkeep (1.11 per cent); schooling (0.87 per cent); well being (0.66 per cent); miscellaneous items and providers (0.37 per cent); restaurant and lodges (0.27 per cent); alcoholic beverage, tobacco and kola (0.24 per cent); recreation and tradition (0.15 per cent) and communication (0.15 per cent).”
In the meantime, the NBS mentioned that meals inflation in March 2023 to rose to 24.45 per cent on a year-on-year foundation — representing a 7.25 per cent factors larger in comparison with the speed recorded in March 2022.
The statistics physique defined that the rise was brought on by will increase in costs of oil and fats, bread and cereals, potatoes, yam and different tubers, fish, fruits, meat, greens, and spirits. On a state profile, Sokoto, Zamfara, and Plateau residents paid much less for meals within the interval below evaluation, the company famous.
“In March 2023, meals inflation on a year-on-year foundation was highest in Kwara (28.84 per cent), Ondo (28.22 per cent), and Lagos (27.92 per cent),”the report additional reads.
“Sokoto (18.99 per cent), Zamfara (20.57 per cent) and Plateau (21.38 per cent) recorded the slowest rise in meals inflation on a year-on-year foundation.
“On a month-on-month foundation, March 2023 meals inflation was highest in Bayelsa (3.11 per cent), Rivers (3.00 per cent), and Ondo (2.98 per cent), whereas Bauchi (1.03 per cent), Zamfara (1.08 per cent), and Ogun (1.13 per cent) recorded the slowest rise in meals inflation.”
Final month, Oyeyemi Kale, KPMG Nigeria’s chief economist and former statistician-general of the federation, warned that coverage measures aimed toward controlling spending will not be the very best technique for moderating inflation.
The economist was reacting to current insurance policies (rate of interest hike, and the naira redesign coverage) by the nation’s central financial institution aimed toward curbing the present inflationary development in Nigeria.
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According to Kale, following the CBN’s naira redesign policy, currency in circulation has dropped from N3.28trn in December 2022 to N1.38 trn in January and to an estimated N982.09b in February 2023, representing a 235 per cent decline.
“It was expected that the scarcity of redesigned notes, which caused a cash crunch in the economy since January 2023, would stimulate a slowdown in demand-pull inflation, especially given the series of interest rate hikes from the central bank (500 basis points since May 2022). This has, however, not happened yet,” he said.
“This might indicate a drop in output below effective demand, despite the cash crunch, with some producers of goods and services whose activities are cash-based facing challenges purchasing inputs for production or replacing their stock and distributing them across the country.”
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