High food prices push Nigeria’s inflation to 18.17% in March 2021

… highest inflation rate in three years

By Chioma Obinagwam

The National Bureau of Statistics (NBS), the office that oversees and publishes statistics for Nigeria, has said that headline inflation for the period of March 2021 rose to 18.17 percent- the highest level since January 2017.

Confiance News gathered from the Statitician General of the NBS, Dr. Yemi Kale in a tweet on Thursday.

A breakdown of the report further disclosed that the Headline inflation, which according to the financial dictionary, is the total inflation present in an economy, rose by 82 basis points (bps) from 17.33 percent in February 2021 Year on Year (YoY) to 18.17 percent in March.

Similarly, Food inflation, which refers to rise in whole sale price index of essential food item, rose to 22.95 percent in March 2021 (YoY) from 21.79 percent in February 2021.
This represents a 116 bps increase within the review period.
“This rise in the food index was caused by increases in prices of Bread and cereals, Potatoes, yam and other tubers, Meat, Vegetable, Fish, Oils and fats and fruits,” he said.

Also, Core inflation, which is a measure of inflation which excludes certain volatile and seasonal prices, rose by 29 bps (YoY) to 12.67 percent in March 2021 from 12.38 percent in February 2021.

Confiance News reports that as insecurity, kidnapping, banditry among other vices continues unabated in the northern part of the country where most of the food supplies come from, chances are that subsequent inflation report would see more hike in food inflation in subsequent months.