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Recession looms in Nigeria as inflation rate jumps

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Nigeria’s inflation rate jumped to 12.26% in March, 2020, latest inflation report released by the National Bureau of Statistics has revealed.

According to the NBS report, month on month, inflation rose by 12.26% in March 2020, higher than the rate (12.20%) recorded in February and 12.13% in January.

Inflation rate rose for the 8th consecutive month as recession looms in the Nigerian economy amidst the rapid spread of COVID-19 pandemic

Food inflation, a closely watched component of the inflation index, rose by 14.98% in March 2020 compared to 14.90% in February 2020. According to the NBS, the rise in the food index was caused by increases in prices of Bread and Cereals, Fish, Potatoes, Yam and other tubers, Oils and fats, Vegetables, and Fruits.

On the other hand, core inflation (All items less farm produce), which excludes the prices of volatile agricultural produce also rose 9.73% in March 2020, up by 0.3% when compared with 9.43% recorded in February 2020.

The highest increases were recorded in 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.

 

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