Nigeria: Inflation rises in March
Latest reading: Inflation came in at 24.2% in March, up from February’s 23.2%. March marked the third month after the statistical office introduced methodological changes, lowering the weight of food—which had been a key inflation driver in previous months. Looking at the details of the release, prices for housing and utilities plus clothing and footwear increased at a quicker pace. That said, food prices rose at a softer rate.
Annual average inflation fell to 29.3% in March (February: 30.1%). Meanwhile, core inflation rose to 24.1% in March from the previous month’s 22.1%.
Finally, consumer prices rose 3.90% from the previous month in March, above February’s 2.04% reading.
Outlook: Since January’s changes in inflation methodology, our panel has reduced its 2025 inflation forecasts by 3.3 percentage points. Analysts now expect a stronger base effect and the lower weight of food in the basket to drive inflation below 2024’s level by more than previously anticipated. Moreover, past monetary tightening should help tame price pressures. Extreme weather events are an upside risk.