In March 2023, Nigeria’s annual inflation rate rose for the third consecutive month to 22.04 percent, an increase of 0.13 percent points when compared to the February rate. This was 6.13 percent points higher than the rate recorded in March 2022, which was 15.92 percent. The main drivers of the increase were food and non-alcoholic beverages (11.42 percent); housing, water, electricity, gas and other fuel (3.69 percent); clothing and footwear (1.69 percent); transport (1.43 percent); and furnishing and household equipment (1.27 percent).
Household equipment and maintenance expenses make up 1.11 percent of total spending, while education expenses make up 0.87 percent, health expenses make up 0.66 percent, miscellaneous goods and services expenses make up 0.37 percent, restaurant and hotel expenses make up 0.27 percent, alcoholic beverages, tobacco, and kola expenses make up 0.24 percent, recreation and culture expenses make up 0.15 percent, and communication expenses make up 0.15 percent.
In March 2023, according to the All-Items Index, the average price level was 0.15% higher than in February 2023. The percentage change in the average Consumer Price Index (CPI) for the 12-month period ending March 2023 was 20.37%, a 3.83% increase compared to the 16.54% recorded in March 2022. Furthermore, food inflation rate on a year-on-year basis was 24.45%, a 7.25% point increase from the 17.20% recorded in March 2022. The rise in food inflation was attributed to increased prices of Oil and fat, Bread and cereals, Potatoes, Yam and other tubers, Fish, Fruits, Meat, Vegetables, and Spirits. Finally, Ondo (25.38%) and Bayelsa (24.80%) were the states with the highest year-on-year all items inflation rate. In March 2023, Headline inflation was highest in Lagos with 24.66%, while Borno recorded the slowest rise with 19.18%. On a month-on-month basis, Bayelsa had the highest increase of 2.58%, while Anambra, Ebonyi, and Zamfara recorded the slowest rise of 1.03%, 1.14%, and 1.27%, respectively. For food inflation, Kwara had the highest year-on-year increase of 28.84%, while Sokoto had the slowest rise of 18.99%. On a month-on-month basis, Bayelsa had the highest rise of 3.11%, while Bauchi, Zamfara and Ogun had the slowest rise of 1.03%, 1.08%, and 1.13%, respectively.
