Nigeria inflation rises to 12.1% y/y in March 2012
Category: Nigerian Economy
Wednesday 25 April 2012
The Composite Consumer Price Index which measures inflation rose to 12.1 percent year-on-year in March 2012. This figure is 0.2 percentage points lower than 11.9 percent recorded in the previous month. The monthly composite CPI was higher by 1.6 percent when compared with February 2012.
The increase in the headline index, composed of the core and food indices, partially was due to the planting season which increased the price of food products in the market, and an increase in prices in the economy. However, this was moderated by lack of liquidity in the economy due to the delay in the monthly FAAC.
The urban inflation rate was 13.7 percent year-on-year while the rural figure was 11.0 for March 2012. The urban All Items index increased by 1.2 percent on month-on-month, while the corresponding rural index increased by 2.1 percent when compared with their preceding month.
The percentage change in the average composite CPI for the twelve-month period ending March 2012 over the average of the CPI for the previous twelve-month period was 10.9, down slightly from the 11.0 preceding month. The corresponding 12-month year-on-year average percentage changes for urban and rural indices were 9.9 and 11.8 respectively.
In March, the level of the Composite Food Index was higher than the corresponding level a year ago by 11.8 percent. This was higher than 9.7 percent recorded in the previous month. Compared with February 2012 figure, average monthly food prices rose in March 2012 by 2.3 percent.
The rise in the food inflation was mainly due to the increasing cost of food products especially yams and other tubers as food products have become relatively scarce due to the drawdown from the end of year harvest. The average annual rate of rise of the index was 10.3 percent (year-on-year) for the twelve-month period ending March 2012.
The “All items less Farm Produce” index which excludes the prices of volatile agricultural products rose by 15.0 percent year-on-year, while the average 12 month annual rate of rise of the index was 12.1 percent for the twelve-month period ending February 2012. On a month-on-month basis, the core index increased by 4.5 percent in March 2012.