Nigeria’s inflation down by 0.52% to 17.26% in March- NBS

• CBN measures partly responsible
The National Bureau of Statistics (NBS) on Thursday said that the nation’s inflation recorded a decline, the second consecutive time in the year dropping by 0.52 per cent in March, on the year- on- year basis.
This followed the first decline recorded in February when inflation dropped by 0.94 per cent.
The NBS’ latest Consumer Price Index (CPI) for March revealed that the index, which measured inflation stood at 17.26 per cent year-on-year compared to February consumer activities, which was 17.78 per cent.
According to NBS, “This is the second consecutive month of a decline in the headline CPI on a year-on-year basis.
“It represents the effects of stabilising prices in already high food and non-food prices as well as favourable base effects over 2016 prices.
“It is also indicative of early effects of a strengthened Naira in the foreign exchange market.’’
According to the report, price increases have been recorded in all Classification of Individual Consumption by Purpose (COICOP) divisions that yield the Headline Index.
It, however, stated that the major divisions responsible for accelerating the pace of the increase in the headline index were Housing, Water, Electricity and Gas.
Others it said were Education, Food and Alcoholic Beverages, Clothing and Footwear and Transportation Services.
On a month-on-month basis, the report stated that the Headline index increased by 1.72 per cent in March, 0.23 per cent points higher from the rate recorded in February.
The Food Index increased by 18.44 per cent (year-on-year) in March, slightly down 0.09 per cent points from the rate recorded in February, which was 18.53 per cent.
It stated that the index was driven by increases in the prices of bread, cereals, meat, fish, potatoes, yams and other tubers and wine.
It also stated that the slowest increase in food prices year-on-year was recorded by Soft Drinks, Fruits, Coffee, Tea and Cocoa even as the report stated that price movements recorded by all Items less farm produce or Core sub-index rose by 15.40 per cent (year-on-year) in March.
It stated that it was down by 0.60 per cent points from the rate recorded in February (16.00) per cent.
“During the month, the highest increases were seen in miscellaneous services relating to dwelling, electricity, solid fuels, clothing materials.
“Increases were also seen in other articles of clothing, Liquid fuel, Spirits as well as Fuels and lubricants for personal transport equipment.
“The Urban index rose by 18.27 per cent (year-on-year) in March from 18.57 per cent recorded in February, and the Rural index increased by 16.47 per cent in March from 16.98 per cent in February.’’
On month-on-month basis, the report stated the urban index rose by 1.76 per cent in March from 1.52 per cent recorded in February.
It further stated that the rural index rose by 1.69 per cent in March from 1.47 per cent in February.
The effects of the Central Bank of Nigeria’ (CBN) intervention on the currency market to meet demand for dollars contributed significantly to the upward movement of the nation’s economy and the downward movement of the nation’s inflation.
The NBS said the second consecutive month of a decline in the headline rate represented “the effects of stabilizing prices in already high food and non-food prices”.
“It is also indicative of early effects of a strengthened naira in the foreign exchange rate market,” it said.
The CBN has sold over $4 billion on the forward currency market since February in an attempt to improve dollar liquidity and narrow the spread between the official and the black market exchange rates. Black market rates have fallen as a shortage of dollars caused the naira to plummet.