The National Bureau of Statistics has announced that the Consumer Price Index, which measures inflation rate, dropped from 17.78 per cent in February to 17.26 per cent as at end of March.
Apart from the inflation report, the NBS also released five others. They are the cooking gas price watch, Premium Motor Spirit price watch, kerosene price watch, diesel price watch and transport fare watch.
The development is a relief to consumers as this is the second consecutive time in 15 months that the country will see a reduction in the price index.
The NBS attributed the decline in inflation rate to the early effects of the strengthening naira in the foreign exchange market, which has assisted in stabilising prices.
It said, “On a headline basis, the Consumer Price Index, which measures inflation, increased by 17.26 per cent (year-on-year) albeit at a slower pace in March 2017, 0.52 per cent points lower from the rate recorded in February (17.78) per cent.
“This is the second consecutive month of a decline in the headline CPI on a year-on-year basis, representing the effects of stabilising prices in already high food and non-food prices as well as favourable base effects over 2016 price.
“It is also indicative of early effects of a strengthened naira in the foreign exchange rate market.”
However, the report stated that while the overall pace of inflation increase was slower, the rate of the increase in housing, water, electricity, gas, other fuels, education, food and alcoholic beverages, clothing and footwear, as well as transportation services was accelerated.
