Nigeria: Inflation hits over four-year high in March
April 15, 2021
Consumer prices rose 1.56% month-on-month in March, up from February’s 1.54% increase. The print reflected a stronger rise in food prices.
Inflation rose from 17.3% in February to 18.2% in March, marking the strongest annual rise in prices since January 2017. Meanwhile, the trend pointed up as annual average inflation came in at 14.5% in March from 14.1% in February. Moreover, core consumer prices, which exclude volatile agricultural produce, rose 1.1% month-on-month in March (February: 1.2%), while core inflation rose to 12.7% in March from 12.4% in the prior month.
Jacques Nel, head of Africa macro at Oxford Economics, added:
“Inflation is expected to remain at uncomfortable levels over the short term as the exchange rate depreciates and oil and food prices increase. The CBN may also impose additional FX restrictions and import bans, which could exacerbate domestic product shortages.”