Roundup of Major Economic News from Africa’s Largest Economies for the Week-Ending 19 March 2023: Nigeria

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Nigerian Inflation Rises Marginally in February 2023 as Core Inflation Slows & Food Inflation Rises

The figure below indicates that inflation in Nigeria rose from 21.82% to 21.91% Y/Y in February 2023.  This was at its highest level since 2005 as core inflation (which excludes energy and food) rose from 18.84% to 19.16% and transport inflation accelerated from 21.02% to 21.43%.  However, food inflation actually slowed marginally, from 24.35% to 24.32%.  Besides any geopolitical events that might occur, Nigeria’s inflation rate going forward depends on the decisions of the Central Bank of Nigeria (CBN) with respect to the currency, the Naira, with which it has a difficult job of trying to manage since the exchange rate is a fixed regime.  The government as well as the CBN are reluctant to let the Naira float freely, which since 2020 has had to be devalued over time by just over 50% since 2020.

Consumer, Core & Food Inflation in Nigeria from March 2022 – February 2023 (Y/Y %)

Data Source: National Bureau of Statistics, Nigeria

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