Nigeria’s Inflation Hit 31.70% In February – NBS

Nigeria’s inflation has hit 31.70% in February, says NBS.

Glamtush reports that Nigeria’s inflation rate rose to 31.70 per cent in February from 29.90 per cent recorded in January 2024 according to the latest data by the National Bureau of Statistics (NBS).

This online news platform gathered that the NBS released the figure on Friday with the latest data showing a rise from the 29.90 percent recorded in January 2024.

According to the NBS Consumer Price Index and Inflation Report for February, the hike represents a 1.80 percent increase from what was recorded in January.

“In February 2024, the headline inflation rate increased to 31.70% relative to the January 2024 headline inflation rate which was 29.90%,” the report read partly.

Comparatively, on an annual basis, February 2024’s inflation rate was 9.79 per cent higher than the 21.91 per cent recorded in February 2023.

Also, the month-on-month headline inflation rate in February 2024 reached 3.12%, an increase of 0.48% from January 2024’s rate of 2.64%.

This indicates that the pace at which average prices rose in February 2024 exceeded the rate of price increase in January 2024.

The NBS further stated, “Looking at the movement, the February 2024 headline inflation rate showed an increase of 1.80 percent points when compared to the January 2024 headline inflation rate. On a year-on-year basis, the headline inflation rate was 9.79 percent points higher compared to the rate recorded in February 2023, which was 21.91 percent.

“This shows that the headline inflation rate (year-on-year basis) increased in the month of February 2024 when compared to the same month in the preceding year (i.e., February 2023).

“Furthermore, on a month-on-month basis, the headline inflation rate in February 2024 was 3.12 percent, which was 0.48 percent higher than the rate recorded in January 2024 (2.64 percent).”

The latest inflationary surge is despite tightened monetary policy by the Central Bank.

At the latest Monetary Policy Meeting, the apex bank increased the benchmark interest rate by 400 basis points to a record 22.75 per cent.

Justifying reasons for the hike, the CBN Governor, Olayemi Cardoso, explained that members considered various scenarios including whether to hold or hike policy and concluded that inflation could become more persistent in the medium term and pose more regulatory issues if not well-anchored.

Thus, members voted for a significantly high policy rate hike to drive down the inflation rate substantially.

He mentioned that the meeting extensively discussed various distortions in the foreign exchange market, particularly the impact of speculators exerting upward pressure on the exchange rate, leading to a significant pass-through effect on inflation.

The consensus reached involved a substantial policy rate hike aimed at effectively reducing inflation.

Meanwhile, Nigeria’s food inflation rate in February was 37.92% on a year-on-year basis. This was 13.57% points higher compared to the rate recorded in February 2023 (24.35%), it said.

“The rise in food inflation on a year-on-year basis was caused by increases in prices of bread and cereals, potatoes, yam and other tubers, fish, oil and fat, meat, fruit, coffee, tea, and cocoa,” the report read.

Friday’s figures come amid a push by authorities to combat the rising cost of living in Nigeria. The removal of subsidy on petroleum and the floating of the naira were major triggers of the hike.

There have been protests in several parts of the country owing to that but the government is assuring Nigerians of tackling the challenges.

Despite the rising inflation rates, the governor of the Central Bank of Nigeria (CBN) Yemi Cardoso had earlier expressed optimism of a drop.

“Inflationary pressures are expected to decline in 2024 due to the CBN’s inflationary targeting policy aiming to rein in inflation to 21.4 percent, aided by improved agricultural productivity and easy global supply chain pressures,” he told members of the House of Representatives in February.

“The Nigerian foreign exchange market is currently facing increased demand pressures causing a continuous decrease in the value of naira.”