Nigeria’s headline inflation accelerates to 33.2% regardless of the naira’s sturdy efficiency

Headline inflation in Nigeria accelerated to 33.2% in March, defying analysts’ estimates of a marginal enhance. These estimates have been based mostly on the sturdy efficiency of the naira, which turned the world’s best-performing foreign money in April. 

Different coverage selections, together with rate of interest hikes in February and March, have been anticipated to gradual headline inflation, however a 150 foundation factors enhance in March defied these predictions. 

Meals continued to be a significant driver of rising costs, with meals inflation accelerating to 40.01%.

“On a month-on-month foundation, the meals inflation charge in March 2024 was 3.62%, which reveals a 0.17% lower in comparison with the speed recorded in February 2024 (3.79%), a report from the Bureau of Statistics stated. 

Electrical energy, fuel and different fuels had smaller impacts on general inflation. Final week, Nigeria authorised a significant enhance in electrical energy tariffs for its prime clients (Band A) because it seemed to chop prices on electrical energy subsidies. 

Olayemi Cardoso, the Central Financial institution governor, stated final month that he anticipated costs to average by Might, which can coincide with the subsequent assembly to determine on financial coverage selections.