TUE, APRIL 21 2020-theG&BJournal-Nigeria’s headline consumer prices rose by 6bps in March 2020 to 12.26% y/y (February: 12.20% y/y), the seventh consecutive month of rise and at a much faster pace. This is the highest level of price growth since April 2018.
Food inflation rose to 14.98% y/y in the review period.
‘’The lock down in Abuja, Lagos and Ogun States and various major disruptions in normal economic activity in several States since then, started in April 2020 and accordingly would not have any major impact on March 2020 Inflation which this report focusses on,’’ the National Bureau of Statistic (NBS) said in a note accompanying the data it published today.
Analysts at Cordros Research said they believe the frontloading of major food items that preceded the great lockdown must have negatively influenced the food basket.
‘’Specifically, the rise was caused by increases in prices of Bread and Cereals, Fish, Potatoes, Yam and other tubers, Oils and fats, Vegetables, and Fruits. Compared to February 2020, food inflation expanded by 7bps, to 0.94% m/m.’’
The composite food index rose by 14.98 percent in March 2020 compared to 14.90 percent in February 2020.
On month-on-month basis, the food sub-index increased by 0.94 percent in March 2020, up by 0.07 percent points from 0.87 percent recorded in February 2020.
The average annual rate of change of the Food sub-index for the twelve-month period ending March 2020, over the previous twelve-month average was 14.11 percent, 0.13 percent points from the average annual rate of change recorded in February 2020 (13.98) percent.
On month-on-month basis, the Headline index increased by 0.84 percent in March 2020. This is 0.05 percent higher than the rate recorded in February 2020 (0.79 percent).
Core inflation, which excludes the prices of volatile agricultural produce stood at 9.73 percent in March 2020, up by 0.3 percent when compared with 9.43 percent recorded in February 2020.
Pressures were most significant in the prices of Passenger transport by air, Tobacco, Household textiles, Major household appliances, Domestic services, and household services, Pharmaceutical products, Maintenance and repair of personal transport equipment, Water supply, and Catering services. On a month-on-month basis, the core index was up by 7bps 0.80%.
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