Nigeria’s Inflation Improves for Second Consecutive Month in March

• Nigeria’s Inflation Improves for Second Consecutive Month in March

Nigeria’s inflation improved for a second consecutive month in March after rising for 15 months.

The consumer confidence index which measures inflation rate declined from 17.78 percent year-on-year in February to to 17.26 percent in March, the National Bureau of Statistics, NBS, reported on Thursday.

This was after inflation rate peaked at 18.72 percent in January, its highest in over 11 years.

On a monthly basis, inflation rose by 1.72 percent in March, up from 1.49 percent recorded in February.

According to the NBS, the improvement was as a result of the on-going foreign exchange intervention by the Central Bank of Nigeria to increase forex liquidity and ensure that manufacturers access the dollar at a more affordable rate.

“It is also indicative of early effects of a strengthened naira in the foreign exchange market.

“Price increases were recorded in all COICOP divisions that yield the headline index.

“However, the major divisions responsible for accelerating the pace of the increase in the headline index were housing, water, electricity, gas and other fuel, education, food and alcoholic beverages, clothing and footwear, and transportation services,” the NBS said.

Also, the surge in the global oil prices has aided foreign exchange generation and further enhance CBN ability to cushion the economy.