The consumer price index (CPI) for Nigeria, which measures inflation or the change in the cost of goods and services, has announced that the country’s inflation rate increased from 21.91% in February to 22.04% in March 2023. According to the National Bureau of Statistics’ (NBS) most recent CPI report, which was released on Saturday, this is the case.
The country’s inflation rate has now increased three times in a row since the year’s start, according to data from March. The headline inflation rate increased to 22.04% in March 2023 from 21.91% in February 2023, according to the CPI report from NBS.
The current means that a fixed amount of money can purchase a smaller quantity of goods and services than it could otherwise. The real worth of money has been significantly diminished, which has decreased the purchasing power of money for people.
According to the report, the headline inflation rate for March 2023 increased by 0.13% points from that for February 2023. The headline inflation rate was 6.13% points higher year over year than the 15.92% rate that was registered in March 2022.
This demonstrates that the headline inflation rate rose in March 2023 as compared to the same month the year before (March 2022).
“The contributions of items on the divisional level to the increase in the headline index are food & non-alcoholic beverages (11.42%); housing, water, electricity, gas & other fuel (3.69%); clothing & footwear (1.69%); transport (1.43%); furnishings, household equipment & maintenance (1.11%); education (0.87%); health (0.66%); miscellaneous goods & services (0.37%); restaurant & hotels (0.27%); alcoholic beverage, tobacco & kola (0.24%); recreation & culture (0.15%) and communication (0.15%).”
More Strain on Disposable Income
Increased inflation rates may have detrimental effects on an economy’s long-term real growth rate or long-term real activity level. According to this research, inflation hinders long-term planning, reduces savings and capital accumulation, and creates economic uncertainty, all of which limit growth and development.
A remarkable decline in real monthly salaries is being seen in many nations as a result of Nigeria’s severe inflationary issue and a global slowdown in economic growth, which is being contributed to by the conflict in Ukraine and the world oil crisis.
For the sake of human growth, the impact of inflation on consumption and spending has not received the necessary attention in the nation. In the public service where increased minimum wages are always clamored for, inflation will, despite nominal adjustments, quickly erode the real value of minimum wages in Nigeria.