Nigeria’s headline inflation rose by 150bps in March to 33.20% y/y (February: 31.70% y/y).

The outturn is 43bps and 30bps higher than Cordros’ (32.77% y/y) and Bloomberg’s median consensus (32.90% y/y) estimates, respectively. However, on a month-on-month basis, headline inflation eased by 10bps to 3.02% (February: 3.12% m/m).

Food inflation increased by 210bps to 40.01% y/y (February: 37.92% y/y). The rise in Food inflation on a year-on-year basis was due to increased prices of the following items: Garri, Millet, Akpu Uncooked Fermented (which are under the Bread and Cereals class).

Yam Tuber, Water Yam (under Potatoes, Yam, and other Tubers class), Dried Fish Sadine, Mudfish Dried (under Fish class), Palm Oil, Vegetable Oil (under Oil and Fat), Beef Feet, Beef Head, Liver (under Meat class), Coconut, Water Melon (under Fruit Class), Lip-ton Tea, Bournvita, Milo (under Coffee, Tea and Cocoa Class). Meanwhile, on a month-on-month basis, food inflation eased by 3.62%, relative to the 3.79% m/m recorded in the previous month.

Similarly, the core inflation (All items less farm produce and energy) expanded by 77bps to 25.90% y/y (February: 25.13% y/y).The highest increases were recorded in prices of the following items: Bus Journey within the city (under Passenger Transport by Road class),

Actual and Imputed Rentals for Housing, Consultation Fee of a medical doctor (under Medical Services class), and pharmaceutical products, etc. Significant pressures were recorded in prices of Gas, Passenger Transport by Air, Liquid Fuel, Fuels, and Lubricants for Personal Transport Equipment, vehicle spare Parts, and Solid Fuel. The core index surged by 37bps to 2.54% m/m in March 2024 compared to the previous month.