Brand News

Why Annual Inflation Rate Rose Further To 12.26% In March On Imported Food

As the coronavirus lockdown extended, the annual Inflation rate has risen further to 12.26% in March on imported food inflation in Nigeria.

According to the National Bureau of Statistics, a 12.26% rise in annual inflation rate for the month of March; higher than 12.20% recorded in February. The increase in inflation rate was due to the depreciation of the Naira against the USD.

Brandnewsday gathered that NBS disclosed that the Bureau de Change and the parallel markets, two months moving average foreign exchange rate rose (Naira depreciated) y-o-y by 2.31% and 2.54% to N365.57/USD and N369.39/USD respectively in March 2020.

Advertisement

Consequently, the imported food index rose by 16.20% (higher than 16.14% in February). Similarly, the food annual inflation rate rose to 14.98% (higher than 14.90% in February); while the core inflation rate also increased to 9.73% (from 9.43% in February).

Read: How Shopper Habits Will Changed Post Coronavirus- Today’s Realities

CowryResearch revealed that the rise in food inflation was caused by increases in prices of meat, fish and vegetables among other things. On the other hand, core inflation was driven by a rise in prices of pharmaceutical products, hospital services, clothing and footwear as well as transportation.

On a monthly basis, the annual inflation rate climbed to 0.84% in March (from 0.79% in February), as imported food inflation index rose by 1.27%. Also, food and core inflation rose to 0.94% and 0.80% (from 0.87% and 0.73% in February) respectively.

Advertisement

Meanwhile, rural and urban inflation rates rose by 11.64% and 12.93% (higher than 11.61% and 12.85%) respectively.
Outlook:  “We opine that the dwindling external reserves amid low crude oil price, despite the resolution of the OPEC+ to cut crude production by 9.7 mbpd, will continue to exert pressure on the exchange rate.

This, in addition to rising demand for pharmaceutical products and onset of the planting season, could increase inflation rate in April.

Read: SBM Jollof Index reveals how COVID-19 has forced Foodstuff prices to almost double in Q1 2020

Facebook Comments
Advertisement
Adebayo

Adebayo is a Content Developer and website manager who loves to learn, unlearn and relearn. He has a knack for exploring the tech world. He is always thirsty to learn as the tech ecosystem evolves every day.

Recent Posts

Stanbic IBTC Pension Managers Concludes Retirement Education Drive Across 5 Cities

Stanbic IBTC Pension Managers, a subsidiary of Stanbic IBTC Holdings, has successfully concluded its 2026…

2 weeks ago

FG Launches FreeTV With Over 100 Channels Ahead Of 2028 Analogue Switch-Off

The Federal Government has unveiled FreeTV, a new free-to-air digital television platform designed to provide…

2 weeks ago

Car Dealers Deception Continues Despite FTC Warnings, Citations- CarEdge

The FTC warned car dealer groups across America about hidden fees & misleading pricing. New…

2 weeks ago

Ukiyo Launches Global Student Support Platform To Connect South Africa’s Youth To Education, Work

Johannesburg, South Africa. 17 June 2026 – Ukiyo, a South African edutech and youth development…

2 weeks ago

Polaris Bank Deepens Youth Financial Literacy Drive, Trains Students In Katsina

Lagos, Nigeria — As part of its ongoing commitment to youth empowerment, financial inclusion, and…

2 weeks ago

Kenya Layer Farmers Hit With Rising Losses As Egg Production Drops

Kenya layer farmers are experiencing lower-than-expected egg production, with industry experts attributing the decline largely to…

2 weeks ago

This website uses cookies.