Nigeria has witnessed an unprecedented surge in food inflation, reaching a staggering 40% in March 2024, according to the latest data released by the National Bureau of Statistics (NBS).
The figures released yesterday by NBS in its Consumer Price Index, CPI, report for March 2024 represented a 2.09 and 1.5 percentage points increase month-on-month.
Experts say the sharp increase from the previous month’s rate of 31.7% exposes the country’s growing economic challenges.
The surge in food prices has been attributed to increases in staple food items such as garri, millet, yam, fish, vegetable oil, meat, fruits, and beverages.
Economists and financial analysts warn that this surge in food inflation will further strain the purchasing power of average Nigerians and predict a continuation of this trend in the coming months.
The headline inflation rate, which includes food inflation, rose to 33.2%, up from 31.7% recorded in February, representing a 2.09 and 1.5 percentage point increase month-on-month, respectively.
Analysts at CardinalStone Finance Limited anticipate further inflationary pressure following the recent hike in electricity tariffs. They project an inflation rate of 34.6% in April 2024, driven by the impact of the tariff hike.
Meanwhile, stakeholders in the Organised Private Sector (OPS) have expressed grave concerns over the persistent rise in inflation, warning of dire consequences for small businesses.
In response to the alarming inflationary trend, analysts at Alpha Morgan Capital predict a continued but slower inflation rate, attributing the projection to recent monetary interventions by the Central Bank of Nigeria and government fiscal policies.
