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Nigeria’s Consumer Price Index (CPI) rose to 12.26 per cent year-on-year in March 2020, according to the monthly inflation report released today by the National Bureau of Statistics (NBS). This represents an increase of 6 basis points (bps) (or 0.06 percentage point) compared to 12.20 per cent reported in February 2020. It is also the seventh consecutive monthly rise in the CPI, which measures inflation.

On month-on-month basis, the headline inflation increased by 0.84 per cent in March, or 0.05 percentage point higher than the rate recorded in the previous month. The NBS said there were increases in all major indices.

In March, food inflation rose by 8 bps to 14.98 per cent, compared to 14.90 per cent reported in February. According to the NBS, the rise in the food inflation was caused by increases in prices of bread and cereals; fish; potatoes, yam and other tubers; oils and fats; vegetables, and fruits. Based on state profiles, food inflation was highest in Sokoto (16.81 per cent), Edo (16.63 per cent) and Ogun (16.39 per cent), while Jigawa (13.69 per cent), Bauchi (13.40 per cent) and Lagos (13.06 per cent) recorded the slowest rise.

Core inflation, which excludes the prices of volatile agricultural produce, stood at 9.73 per cent in March, rising by 0.3 percentage point when compared to the preceding review period. The statistics agency said the highest increases were recorded in prices of passenger transport by air, tobacco, household textiles, major household appliances, domestic services and household services, and pharmaceutical products. Price increases were also recorded in maintenance and repair of personal transport equipment, water supply and catering services.

Also, in the review period, urban inflation rate stood at 12.93 per cent, rising by 8 bps from 12.85 per cent recorded in February, while the rural inflation rate also rose by 3 bps from 11.61 per cent in February to 11.64 per cent last month.

The NBS explained that the lockdown in Abuja, Lagos and Ogun states ordered by President Muhammadu Buhari and various major disruptions in normal economic activity in several states started in April 2020. Accordingly, those disruptions would not have any major impact on March 2020 inflation, which this report focusses on.