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Inflation down in February amid acute cash crunch

...Hits 21.91% YoY

Nigeria’s inflation rate showed a slight decline in February this year, even as the yearly figure increased marginally to 21.91 percent Year-on-Year (YoY).

According to the National Bureau of Statistics, NBS, in its Consumers Price Index, CPI, report released on Tuesday, headline inflation rate rose to 21.91 percent in February compared to the January 2023 rate which was 21.82 percent.

On a month-on-month (MoM) basis, NBS said, the percentage change in the All-Items Index in February 2023 was 1.71 percent, which was 0.16 percentage points lower than the rate recorded in January 2023 (1.87 percent).

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This means that in February 2023, on average, the general price level was 0.16 percent lower relative to January 2023.

Analysts are of the view that the lower inflation rate recorded in February was as a result of the acute cash crunch that hit the economy following the Naira redesign policy of the Central Bank of Nigeria.

NBS said food inflation rate in February 2023 was 24.35 percent on YoY basis; which was 7.24 percentage points higher compared to the rate recorded in February 2022 (17.1 percent).

The rise in food inflation, it said was caused by increases in prices of oil and fat, bread and cereals, potatoes, yam and other tubers, fish, fruits, meat, vegetable, and food products.