According to the latest data released by the National Bureau of Statistics (NBS), Nigeria’s inflation rate surged to 33.2% in March 2024, reflecting a 1.5% increase from February 2024’s 31.7%. While the rise in inflation slowed compared to the 1.80% increase in February, it continues to pose significant challenges to the economy.
Drivers of Inflation
The inflationary pressure in March was primarily fueled by escalating costs in food and beverages, alongside rising energy and housing expenses, exacerbating the financial strain on households nationwide.
Year-on-Year Comparison
Comparing year-on-year figures, the headline inflation rate surged by 11.16% from March 2023’s 22.04%. Conversely, on a month-to-month basis, the headline inflation rate for March 2024 witnessed a slight decline of 0.10% from February 2024’s 3.12%.
Food Inflation
In March 2024, food inflation soared to 40.01% year-on-year, marking a substantial increase of 15.56 percentage points from March 2023’s 24.45%. Factors such as escalating prices of staple foods like garri, millet, and yam tubers contributed significantly to this surge.
Urban Inflation
Urban areas experienced a year-on-year inflation rate of 35.18% in March 2024, marking a significant rise from March 2023’s 23.07%. Despite a marginal decrease in month-over-month urban inflation, the urban populace continues to grapple with soaring living costs.
Rural Inflation
Similarly, rural areas witnessed a notable uptick in inflation, reaching 31.45% year-on-year in March 2024, up from March 2023’s 21.09%. While month-over-month rural inflation saw a slight decrease, it remains a concern for rural dwellers facing financial strain.
Core Inflation
Core inflation, excluding volatile agricultural products and energy prices, reached 25.90% in March 2024, a substantial increase from March 2023’s 19.63%. The month-on-month core inflation rate also rose, indicating persistent economic challenges.
Conclusion
The persistent rise in inflation across various sectors underscores the urgent need for robust economic measures to mitigate its adverse effects on households and businesses. With inflationary pressures showing little signs of abating, addressing the root causes becomes paramount for sustainable economic stability.
Source: NairaMetrics