More Trouble For Nigerians As Inflation Hits 17.33%

Nigeria’s inflation rose by 86bps to 17.33% y/y in February 2021 (January: 16.47% y/y), the highest level since February 2017 (17.78% y/y),according to the National Bureau of Statistics.

The outturn is 18bps higher than analyst’s estimate of 17.15% y/y, with the largest variance coming from the food basket. On a month-on-month basis, headline inflation increased marginally by 5bps to 1.54%.

Food inflation rose faster by 122bps to 21.79% y/y in February 2021 (January: 20.57% y/y),the bureau said

The highest price increases were recorded in Bread and cereals, Potatoes, Yam and other tubers, Meat, Food products n.e.c, Fruits, Vegetables, Fish and Oils and Fats. On a month-on-month basis, food inflation rose by 1.89% (January: 1.83%).

Similarly, core inflation was up by 53bps to 12.38% y/y. Pressures were most significant in the prices of Passenger transport by air, medical services, miscellaneous services relating to the dwelling, hospital services, passenger transport by road, pharmaceutical products, paramedical services, repair of furniture, vehicle spare parts, maintenance and repair of personal transport equipment, motor cars, dental services and hairdressing salons and personal grooming establishment.