Nigeria’s Inflation Rate drops to its Lowest in 14 Months

There’s some positive shift in the Nigerian economy after data made available by the National Bureau of Statistics (NBS) shows that inflation once again slowed to by 0.99 percent points, the biggest drop in 11 months.

According to the NBS’ Consumer Price Index and Inflation Report for March 2018, the inflation rate dropped to 13.34 percent from 14.33 percent in February.

This is the 14th consecutive month of disinflation since the outset of recovery in February 2017 when inflation first slowed.

The NBS data showed the highest increases were recorded in fruits and vegetables, fish, coffee, eggs and cereals.

“On a month-on-month basis, the headline index increased by 0.84 percent in March 2018, up by 0.05 percent points from the rate recorded in February,” the report read.

“The composite food index rose by 16.08 percent (year on year) in March 2018, down from the rate recorded in February (17.59 percent).

“The urban inflation rate eased by 13.75 percent (year-on-year) in March 2018 from 14.76 percent recorded in February, while the rural inflation rate also eased by 12.99 percent in March 2018 from 13.96 percent in February.

“In March 2018, all items inflation on a year on year basis was highest in Bauchi (16.38%), Kebbi (16.36%) and Nasarawa (16.33%), while Kwara (10.30%), Kogi (10.87%) and Delta (11.17%) recorded the slowest rise in headline year on year inflation.

“In March 2018, food inflation on a year on year basis was highest in Nasarawa (20.83%), Bayelsa (19.03%)and Yobe (18.93%), while Kogi (11.99%), Bauchi (12.60%) and Benue (13.07%) recorded the slowest rise in food inflation.”

Nigeria exited inflation in mid-2017 after experiencing its first recession in 25 years occasioned by persistent drop in oil prices.

The Federal Government has since set a target of single-digits inflation rate before the end of the fiscal year.

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