The nation’s? consumer inflation rose to 12.1 per cent year-on-year in March, compared with 11.9 per cent year-on-year in February, driven by higher food prices, the National Bureau of Statistics said yesterday.
“The increase in the headline index, composed of the core and food indices, partially was due to the planting season which increased the price of food products in the market, and an increase in prices in the economy,” an NBS document said.
Food inflation, the largest component in the headline figure, rose to 11.8 per cent year-on-year in March, compared with a revised figure of 9.7 per cent in February.
The bureau said the rise in consumer inflation could have been more severe but for a delay in sharing out oil revenues between different tiers of government, which eased liquidity.
The delay in passing the 2012 budget has also eased pressure on prices because capital spending allowances have yet to be distributed to the ministries.
The central bank kept its base rate on hold at 12 per cent for the third time in a row last month, saying that while it was concerned about inflationary pressures, the government had taken positive steps in tightening fiscal policy.
CBN governor Sanusi Lamido Sanusi said he expected inflation to rise to around 14-15 per cent by the middle of this year, due to the partial removal of fuel subsidies in January.
“Although this has pushed up the cost of motor fuel and associated products it has also reduced the spending power of ordinary Nigerians, which has tempered the inflationary impact, Reuters reprted economists as saying yesterday.