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Nigeria’s Inflation Rate Sees Slower Increase in April

According to the latest data released by the National Bureau of Statistics (NBS), Nigeria’s headline inflation rate experienced a deceleration in April compared to the previous month.

The Consumer Price Index (CPI) and Inflation Report for April, unveiled in Abuja on Wednesday, revealed a slight uptick in the inflation rate to 33.69 percent, up from 33.2 percent recorded in March, marking an increase of 0.49 percent.

However, the month-on-month analysis paints a different picture, indicating a moderation in the headline inflation rate for April 2024. The rate stood at 2.29 percent, reflecting a decrease of 0.73 percent from the 3.02 percent recorded in March.

“This means that in April 2024, the rate of increase in the average price level is less than the rate of increase in the average price level in March 2024,” NBS reported.

The report said the increase in the prices of some items, such as food and non-alcoholic beverages, housing, water, electricity, gas, and other fuel, clothing and footwear, and transport led to the creeping increase in the headline index for April 2024.

Other items with notable price increases were furnishings, household equipment and maintenance, education, health, miscellaneous goods and services, restaurants and hotels, alcoholic beverage, tobacco and kola, recreation and culture, and communication.

Food inflation, which rose to 40. 53 per cent in April was the major driver of the inflation.
But notably, on a month-on-month basis, the food inflation rate in April was 2.50 per cent, compared with 3.62 per cent in March.

The April food inflation decreased by 1.11 per cent compared to the rate recorded in March 2024.

“The fall in food inflation on a month-on-month basis was caused by a decrease in the average prices of Guinea corn flour, Plantain Flour etc (under Bread and Cereals class); Yam, Water Yam, Irish Potato, and CocoYam.

“Others are Beer, Local Beer, Milo, Bournvita, Nescafe, Groundnut oil, Palm oil, egg, fresh milk, powdered milk, Tin Milk, Soft drinks, wine and fruits. ”

The NBS said on a month-on-month basis, the core inflation rate was 2.20 per cent in April 2024.
“This indicates a 0.24 per cent decrease compared to what was recorded in March 2024 at 2.54 per cent.”

“On a month-on-month basis, the urban inflation rate was 2.67 per cent, which decreased by 0.50 per cent compared to March 2024 at 3.17 per cent.’’

“On a month-on-month basis, the rural inflation rate was 1.92 per cent, which decreased by 0.95 per cent compared to March 2024 at per cent.’’

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