Inflation Soars to Record High Despite Naira’s Rebound
Nigeria’s inflation rate surged to an unprecedented 33.2% in March, defying the recent appreciation of the naira currency. The latest Consumer Price Index report from the National Bureau of Statistics revealed a staggering 1.5 percentage point increase from February’s 31.7% rate, marking the 15th consecutive monthly rise in inflation.
The unyielding upward spiral in consumer prices comes as a setback, even as the naira has demonstrated resilience against the U.S. dollar in recent weeks, nearing parity on the parallel market.
Food Inflation: The Driving Force
The statistics bureau highlighted the persistent surge in food prices as the primary culprit behind the overall inflationary pressures. Food inflation accelerated to an alarming 40.01% in March, up from 37.9% in the previous month.
According to the NBS breakdown, staple food items such as potatoes, yams, bread, cereals, fish, meat, fruits, coffee, tea, and vegetables experienced significant price hikes, contributing to the rise in the food and non-alcoholic beverages category, which exerted the most substantial impact on the headline inflation index.
Political Undercurrents
Amid the economic turmoil, the ruling All Progressives Congress (APC) party has found itself embroiled in controversy, suspending the governor of Kano State, Abdullahi Ganduje, over allegations of bribery.
As Nigeria grapples with escalating living costs, the outlook remains uncertain, with analysts anticipating a potential further appreciation of the naira in the coming week. However, the parallel market opened flat at 1,120 naira per U.S. dollar on Monday, highlighting the volatility and challenges faced by the Nigerian economy.
