Headline Inflation
In March 2024, the headline inflation rate experienced a notable uptick, reaching 33.20%, up by 1.50% compared to the February 2024 rate of 31.70%. The year-on-year comparison reveals a substantial increase in the headline inflation rate for March 2024, standing at 33.20%, which is 11.16% points higher than the rate recorded in March 2023, at 22.04%. This indicates a notable escalation in the inflation rate from March 2023 to March 2024.
Additionally, when examining the month-on-month basis, the headline inflation rate for March 2024 was 3.02%, marking a slight decrease of 0.10% compared to February 2024, where it was 3.12%. This suggests that in March 2024, the rate of price level increase was slightly lower than that observed in February 2024.
Source: NBS, Futureview-Research
Urban Inflation
In March 2024, the urban inflation rate on a year-on-year basis surged to 35.18%, marking a significant increase of 12.11% compared to March 2023, when it stood at 23.07%. Meanwhile, on a month-on-month basis, the urban inflation rate remained relatively stable at 3.17% in March 2024, with a negligible decrease of 0.0001% compared to February 2024. The twelve-month average for the urban inflation rate in March 2024 was 28.96%, reflecting a notable rise of 7.96% from March 2023, which was at 21.00%.
Rural Inflation
In March 2024, the rural inflation rate stood at 31.45% on a year-on-year basis, marking a significant increase of 10.37% compared to March 2023, when it was at 21.09%. On a month-on-month basis, the rural inflation rate for March 2024 was 2.87%, showing a decrease of 0.20% from February 2024, which was at 3.07%. The corresponding twelve-month average for the rural inflation rate in March 2024 was 25.50%, indicating a notable rise of 5.71% compared to March 2023, which was at 19.79%.
Food Inflation
In March 2024, the food inflation rate reached 40.01% on a year-on-year basis, marking a substantial increase of 15.56 percentage points compared to March 2023, when it stood at 24.45%. This surge in food inflation was primarily driven by price hikes in several key items, including Garri, Millet, and Akpu Uncooked Fermented (classified under Bread and Cereals); Yam Tuber and Water Yam (classified under Potatoes, Yam, and other Tubers), Dried Fish, Sardine, and Mudfish Dried (classified under Fish), Palm Oil and Vegetable Oil (classified under Oil and Fat), Beef Feet, Beef Head, and Liver (classified under Meat), Coconut and Watermelon (classified under Fruit), as well as Lipton Tea, Bournvita, and Milo (classified under Coffee, Tea, and Cocoa).
On a month-on-month basis, the food inflation rate for March 2024 was 3.62%, showing a 0.17% decline compared to February 2024’s rate of 3.79%. This dip in food inflation was influenced by a moderation in the rate of price increase for items such as Guinea corn flour and Plantain Flour (classified under Bread and Cereals), Yam, Irish Potato, and Coco Yam (classified under Potatoes, Yam & Other Tubers), Titus fish and Mudfish Dried (classified under Fish), as well as Lipton, Bournvita, and Ovaltine (classified under Coffee, Tea, and Cocoa).
Core Inflation (All Items less Farm Produce and Energy)
In March 2024, the Core inflation rate, which excludes the prices of volatile agricultural produce and energy, reached 25.90% on a year-on-year basis, marking a notable increase of 6.26% compared to March 2023, when it was at 19.63%. The most significant price hikes were observed in items such as Bus Journeys within the city (classified under Passenger Transport by Road), Actual and Imputed Rentals for Housing, Consultation Fees for medical doctors (classified under Medical Services), as well as pharmaceutical products, among others.
On a month-on-month basis, the Core Inflation rate reached 2.54% in March 2024, showing an increase of 0.37% compared to February 2024, when it stood at 2.17%. The average twelve-month annual inflation rate was 22.26% for the twelve months ending in March 2024, reflecting a notable rise of 5.04 percentage points from March 2023, which was at 17.22%.
State Profiles
All Items Inflation
In March 2024, the All Items inflation rate on a year-on-year basis was highest in Kogi (39.97%), Bauchi (38.34%), Kwara (38.10%), and Oyo (37.29%), while Borno (25.78%), Benue/Taraba (28.12%), and Katsina (28.32%) recorded the slowest rise in headline inflation on a year-on-year basis. However, on a month-on-month basis, March 2024 saw the highest increases in Zamfara (3.90%), Abia (3.89%), and Ondo (3.75%), while Borno (1.46%), Yobe (1.84%), and Adamawa (1.85%) recorded the slowest rise in month-on-month inflation.
Food Inflation
In March 2024, food inflation on a year-on-year basis was highest in Kogi (48.46%), Kwara (46.18%), and Akwa Ibom (45.18%), while Nasarawa (33.76%), Borno (34.28%), and Bauchi (34.38%) recorded the slowest rise in food inflation on a year-on-year basis. However, on a month-on-month basis, March 2024 food inflation was highest in Abia (5.17%), Cross River (5.14%), and Bayelsa (4.75%), while Borno (1.59%), Yobe (2.08%), and Adamawa (2.12%) recorded the slowest rise in food inflation on a month-on-month basis.
