Higher food prices push up inflation rate to 22.04 per cent – Newstrends
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Higher food prices push up inflation rate to 22.04 per cent

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Higher food prices push up inflation rate to 22.04 per cent

 

For the third consecutive time this year, the inflation rate has risen, hitting 22.04 per cent in March.

The latest rate is contained in the Consumer Price Index (CPI), released on Saturday by the National Bureau of Statistics (NBS).

The NBS report noted that March increase was 0.13 per cent points higher than the February 2023 headline inflation rate of 21.91 per cent.

It stated, “On a year-on-year basis, the headline inflation rate was 6.13 per cent points higher compared to the rate recorded in March 2022 which was 15.92 per cent.”

This shows that the headline inflation rate (year-on-year basis) increased in March 2023 when compared to the same month in the preceding year (March 2022).

“However, on a month-on-month basis, the all-item index in March 2023 was 1.86 per cent, which was 0.15 per cent points higher than the rate recorded in February 2023 (1.71 per cent),” NBS said.

According to the report, this means that in March 2023, on average, the general price level was 0.15 per cent higher relative to February 2023.

The NBS also said items such as food and non-alcoholic beverages contributed largely on the divisional level to the increase in the headline.

It stated, “The contributions of items on the divisional level to the increase in the headline index are food and non-alcoholic beverages (11.42 percent); housing, water, electricity, gas, and other fuel (3.69 percent).”
An analysis of the rate increase shows clothing and footwear (1.69 percent); transport (1.43 percent); furnishings, household equipment and maintenance (1.11 percent); education (0.87 percent); health (0.66 percent); miscellaneous goods and services (0.37 percent); restaurant and hotels (0.27 percent); alcoholic beverage, tobacco and kola (0.24 percent); recreation and culture (0.15 percent) and communication (0.15 percent).

The NBS said food inflation in March 2023 rose to 24.45 percent on a year-on-year basis, representing a 7.25 percent points higher compared to the rate recorded in March 2022.

The statistics body explained that the rise was caused by increases in prices of oil and fat, bread and cereals, potatoes, yam and other tubers, fish, fruits, meat, vegetables, and spirits.

States

On the a state profile, Sokoto, Zamfara, and Plateau residents paid less for food in the period under review, the agency noted.

The report also stated, “In March 2023, food inflation on a year-on-year basis was highest in Kwara (28.84 percent), Ondo (28.22 percent), and Lagos (27.92 percent).

“Sokoto (18.99 percent), Zamfara (20.57 percent) and Plateau (21.38 percent) recorded the slowest rise in food inflation on a year-on-year basis.

“On a month-on-month basis, March 2023 food inflation was highest in Bayelsa (3.11 percent), Rivers (3.00 percent), and Ondo (2.98 percent), while Bauchi (1.03 percent), Zamfara (1.08 percent), and Ogun (1.13 percent) recorded the slowest rise in food inflation.”

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Tinubu orders creation of single-digit tax system

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Tinubu orders creation of single-digit tax system

President Bola Tinubu has directed a creation of a single-digit tax system with a maximum of nine taxes for a company or an individual.

Executive Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, disclosed this in Abuja while speaking with the management team of Guinness Nigeria who paid him a visit.

A statement on Wednesday by Dare Adekanmbi, Special Adviser on Media to the FIRS chairman, quoted Adedeji as saying, “The President gave a directive that he wants a single-digit tax in the country, meaning that the maximum number of taxes we will have after the work of the Presidential Committee on Fiscal Policy and Tax Reforms will be nine taxes.”

The statement added that the plan was aimed at having a conducive environment “created for businesses to flourish and grow the economy.”

 

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Naira gains further against dollar

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Naira gains further against dollar

The Naira rose further in the official market on Tuesday, trading at N1,382.95 to the dollar.

According to data from the FMDQ’s official trading portal, the Naira rose by N25.09, or 1.78 percent, from the previous day’s rate of N1,408 versus the dollar.

On Tuesday, total turnover was $245.58 million, up from $222.15 million on Monday.

Meanwhile, at the Investor’s and Exporters (I&E) window, the Naira traded between N1,486 and N1,300 against the dollar.

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The News Agency of Nigeria (NAN) reports that the Central Bank of Nigeria (CBN) had, earlier on Tuesday at its 294th Monetary Policy Committee (MPC), raised Monetary Policy Rate (MPR) by 200 basis points from 22.75 per cent to 24.75 per cent.

CBN governor Yemi Cardoso said that was meant to tackle the nation’s rising inflation.

Naira gains further against dollar

(NAN)

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CBN jacks up interest rate amid soaring inflation

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CBN jacks up interest rate amid soaring inflation

The Central Bank of Nigeria (CBN) on Tuesday raised the interest rate from 22.75 per cent to 24.75 per cent amid soaring inflation.

Governor of the central bank, Olayemi Cardoso, made this known after the two-day Monetary Policy Committee (MPC) meeting held on Monday and Tuesday.

The country’s latest annual inflation rate jumped to 31.70 per cent from 29.90 per cent for last month, fueled by a continuous rise in food prices.

Cardoso disclosed that the MPC voted to adjust the asymmetric corridor around the MPR at +100 to -300 basis points.

He said the committee voted to retain the Cash Reserve Ratio (CRR) at 45 per cent for commercial banks and adjust the CRR of merchant banks from 10 per cent to 14 per cent.

The committee also voted to retain the liquidity at 30 per cent.

He said, “Members noted the continued rise in headline inflation driven largely by food prices, because of supply shortages, and high cost of Logistics and Distribution.

“The committee, therefore, was of the view that addressing food insecurity is key to containing current inflationary pressures.”

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