The latest report by the National Bureau of Statistics (NBS) shows that inflation rates in Nigeria increased to 15.92% in March 2022.
Current situation
The 0.22% rise in inflation rate in March 2022 is off the back of a 0.1% jump in February 2022. NBS monthly report stated that the increase in inflation was due to the rise in prices of commodity goods such as bread, cereal, gas, fuel and others.
- The Nigerian government has neutralized the shortage of fuel which was primarily responsible for inflation in February; but the prices of fuel have not returned to normal in certain parts of the country.
What does this mean
High inflation rate means a significant increase in the cost of living in the country, invariably threatening the purchasing power of citizens. Also, if traders continue to experience distortion in the supply chain, manufacturers scrambling for forex to carry out business operations, and increased prices of fuel and gas, amongst other factors, a further crash in the nation’s economy looms.
What they are saying
Analysts earlier predicted that with the economic situation of Nigeria, inflation rates might climax at 15.90% in the first quarter of 2022. With inflation rate already at 15.92%, a new benchmark of 16.0% or more could end the first quarter.