By financescape
The Nigerian Bureau of Statistics released the consumer price index report for March 2021. The consumer price index, (CPI) which measures inflation increased to +18.17% (year-on-year) in March 2021. According to the NBS report, this is +0.82% points higher than the rate recorded in February 2021 at 17.33% and January 2021 at +16.47%. The headline consumer price index has (CPI) has recorded a high through the previous (year-on-year) with +15.75% December 2020.
The urban inflation rate increased to +18.76% (year-on-year) in March 2021 from +17.92%recorded in February 2021, while the rural inflation rate increased to +17.60% in March 2021 from +16.77% in February 2021. On a month-on-month basis, the Headline index report’s increased by 1.56% in March 2021. This is 0.02% points higher than the rate recorded in February 2021 at 1.54%.
FOOD INDEX
The composite food index rose to 22.95% in March 2021 compared to 21.79% in February 2021. This rise in the food index was caused by increases in prices of Bread and cereals, Potatoes, yam, and other tubers, Meat, Vegetables, Fish, Oils and fats, and fruits. The consumer price Food sub-index On a month-on-month basis, increased by 1.90% in March 2021, up by 0.01% points from 1.89% recorded in February 2021 and the average annual rate of change of the Food sub-index for the twelve months ending March 2021 over the previous twelve-month average was 17.93%, 0.68% points from the average annual rate of change recorded in February 2021 17.25%.
ALL ITEMS LESS FARM PRODUCE OR CORE INFLATION
The ”All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 12.67% in March 2021, up by 0.29% when compared with 12.38% recorded in February 2021. The report shows the highest increases were in prices of Passenger transport by air, Medical services, Miscellaneous services relating to the dwelling, Passenger transport by road, Hospital services, Pharmaceutical products, Paramedical services, Vehicle spare parts, Dental services, Motor cars, Maintenance and repair of personal transport equipment, and Hairdressing salons and personal grooming establishment. According to the report, the average 12-month annual rate of change of the index was 10.01% for the twelve months ending March 2021; this is 0.76% points lower than the 10.77% recorded in February 2021.
CONSUMER PRICE INDEX STATE ANALYSIS
In analyzing price movements across states NBS reported that in March 2021, all items inflation on year on year basis was highest in Kogi (24.51%), Bauchi (22.24%), and Sokoto (20.70%), while Imo (16.08%), Kwara (15.34%) and Cross River (14.45%) recorded the slowest rise in headline Year on Year inflation. On month on monthly basis, in March 2021 all items inflation was highest in Rivers (2.62%), Gombe (2.14%), and Niger (2.12%), while Zamfara (0.60%), Yobe (0.26%), and Kebbi (0.45%) recorded the slowest rise in headline month on month.
FOOD INFLATION
NBS further stated, In March 2021, food inflation on a year on year basis was highest in Kogi (29.71%), Sokoto (27.02%), and Ebonyi (26.59%), while Abuja (20.10%), Kebbi (19.98%), and Bauchi (18.61%) recorded the slowest rise in headline year on year inflation. While On month on month basis, however, March 2021 food inflation was highest in Rivers (3.52%), Niger (2.92%), and Gombe (2.85%), while Zamfara (0.51%) recording the slowest rise in a month on month food inflation with Yobe and Kebbi recording price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate).
