Higher food prices push up inflation rate to 22.04 per cent

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.”