Inflation Hits Two Year High at 12.26%

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SWITZERLAND, APRIL 23- Fears of another looming recession in Nigeria continues as inflation hit 12.26 percent in March, 2020, according to the Nigerian Bureau of Statistics(NBS). This represents an increase of 0.06 percent from 12.20 percent in February and marks the highest inflation rate in over 2 years.

This is in the midst of the coronavirus pandemic currently ravaging world economies and the free fall in oil prices.

In the Consumer Price Index(CPI) report for March 2020 recently released by the NBS, headline Year on Year Inflation is at 12.26% in March 2020 from 12.20% in Feb 2020.

Food inflation at 14.98% in March 2020 from 14.90% in Feb 2019. Core Inflation at 9.73% in March 2020 from 9.43% in Feb 2020).

The CPI measures the average change over time in prices of goods and services consumed by people for day-to-day living. The construction of the CPI combines economic theory, sampling and other statistical techniques using data from other surveys to produce a weighted measure of average price changes in the Nigerian economy.

The weighting occurs to capture the importance of the selected commodities in the entire index. The production of the CPI requires skills of economists, statisticians, computer scientists, data collectors and others.
Key in the construction of the price index is the selection of the market basket of goods and services.

Every month, 10,534 informants spread across the country provide price data for the computation of the CPI.The market items currently comprise of 740 goods and services regularly priced.

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