BUSINESS Inflation edge high in March, records 7.8%

The Consumer Price Index (CPI) which measure inflation edged high in March, the National Bureau of Statistics (NBS) report has stated.

The inflation rate when compared with February rose to 7.8 percent (year-on year) in March, marginally higher from 7.7 percent recorded in the previous month.

The monthly release signed by the Statistician General Dr Yemi Kale revealed that report in the previous six month, inflation rates have been relatively stable, moving in a choppy fashion. Prices have moved in a 0.3 percentage point band ranging between 8.0 percent and 7.7 percent.

“Between October 2013 and March 2014, food prices have also been relatively stable, moving in a 0.1 percentage band between 9.3 percent and 9.2 percent. In March specifically, prices edged higher to 9.3 percent. Prices were pushed higher as a result of higher prices in the Bread and Cereals, Fish, dairy, Oils and fats, and Fruits classes.”

Prices in the food sub-index where however weighted down by relatively slower increases in the Meats, Vegetables, Potatoes, and Yams and Other tubers, classes.

The monthly report revealed that on a monthly basis, prices increased at a faster rate in March, compared to February. “Prices increased by 0.78 percent in March, higher than rates recorded in February by 0.3 percentage points. This was also the highest month-on-month increase recorded in the previous year.”

Urban prices increased at a faster rate in March relative to February. Prices increased by 7.9 percent (year-on-year), marginally higher from the 7.8 percent recorded the previous month. Rural prices also increased in March, albeit at a marginally lower rate compared to February. The Rural National CPI recorded a 7.6 per cent year-on-year change in March 2014, marginally lower from the 7.7 rate recorded in February.