Inflation fell to 17.26% in March – NBS

The inflation rate fell by 0.52 per cent in March to stand at 17.26 per cent as against the 17.78 recorded in February 2017.

This is the second consecutive month of a decline in inflation rate on a year on year basis, the first being in February.

The inflation report released yesterday by the National Bureau of Statistics (NBS) showed that the latest drop in inflation rate is a result of the effects of stabilising prices in already high food and non-food prices as well as favourable base effects over 2016 prices.

“It is also indicative of early effects of a strengthened naira in the foreign exchange rate market,” the report stated.

Analysis showed that price increases were recorded in all COICOP divisions that yield the Headline Index but the major divisions responsible for accelerating the pace of the increase in the headline index were housing, water, electricity, gas and others fuel, education, food and alcholic beverages, clothing and footware and transportation services.

The report showed that the Food Index increased by 18.44 per cent (year-on-year) in March, slightly down 0.09 per cent points from rate recorded in February (18.53) per cent driven by increases in the prices of bread, cereals, meat, fish, potatoes, yams and other tubers and wine, while the slowest increase in food prices year on year were recorded by soft drinks, fruits, coffee, tea and cocoa.