Inflation inches up to 24.23% — NBS

…Naira dips as foreign investors pull out

…Cost of living rises again as price pressures return

…Economists warn of looming CBN monetary policy respons

By Seun Ibiyemi and Matthew Denis

The cost of living in Nigeria continues its upward trajectory, with the inflation rate reaching 24.23% in March 2025, according to the latest Consumer Price Index (CPI) data released by the National Bureau of Statistics (NBS) on Tuesday.

This marks a modest but concerning increase from February’s inflation rate of 23.18%, signalling a reversal of recent easing and putting renewed pressure on household finances across the country.

The latest figures suggest a return to inflationary levels seen at the start of the year, when the rate hovered around 24.48% following the bureau’s rebasing of the CPI.

For millions of Nigerians, this translates to rising costs for essential goods and services, from food staples to transportation and healthcare.

While the NBS did not immediately release a detailed sector-by-sector breakdown, the consistent rise underscores ongoing structural issues such as currency instability, rising fuel costs, and supply chain disruptions, all of which continue to push prices higher in Africa’s largest economy.

Analysts warn that this renewed inflationary pressure could further strain households already struggling with the consequences of subsidy removals and foreign exchange reforms. It may also prompt a response from the Central Bank of Nigeria in the coming months.

As the government continues its push for economic reforms, many Nigerians are left wondering when the financial squeeze on their wallets will start to loosen.

Commenting on why March’s inflation defied analyst expectations, analysts at CardinalStone noted that the uptick to 24.23% stemmed from renewed pressures in the foreign exchange market, driven by heightened global risk-off sentiment that led to net foreign portfolio investment outflows and increased demand for dollars locally.

“As a result, the Naira weakened by 2.4% month-on-months during this period. Additionally, domestic petrol prices rose nationwide following the temporary suspension of the Naira-for-crude swap arrangement,” the analysts reported.

Core inflation, which excludes volatile food and energy prices, continued its upward trend, climbing to 24.4% year-on-year in March, up from 23.0% in February.

In contrast, food inflation eased slightly to 21.8% in March, down from 23.5% in the previous month.

On a month-on-month basis, price pressures were particularly pronounced, with the headline index rising by 3.9%, significantly higher than the 2.0% recorded in February.

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