The percentage of cost of food in Nigeria declined in September to an actual percentage of 19.57%, compared to the previous value of 20.3% for august.
Currently Nigeria’s consumer price index (CPI) is quoted at 16.63%. Inflation measured by consumer price index (CPI) is defined as the change in the prices of a basket of goods and services that are typically purchased by specific groups of households.
CPI statistics in Nigeria has been on an upward slopping trend since January 2019, Despite the governments attempt to stabilize the inflationary tendencies in the economy, it has proved inefficient.
World bank development update stated that “the Nigerian economy experienced a shallower contraction of -1.8% than had been projected at the beginning of the pandemic (-3.2%). Although the economy started to grow again, prices are increasing rapidly, severely impacting Nigerian households. As of April 2021, the inflation rate was the highest in four years. Food prices accounted for over 60% of the total increase in inflation. Rising prices have pushed an estimated 7 million Nigerians below the poverty line in 2020 alone.”
Trading economics predicted that Nigeria’s food inflation trend will most likely decline over the long term economic cycle.
“Food Inflation in Nigeria is expected to be 14.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Nigeria Food Inflation is projected to trend around 6.00 percent in 2022 and 8.00 percent in 2023, according to our econometric models.”
According to the national bureau of statistics, selected food items were examined and results postulate that majority of food consumed by Nigerians have increased.
This statistics which was released in the early hours of Tuesday morning analyzed food price on year on year increase on a state differential basis.
Bauchi, Adamawa and Gombe state had the lowest food price value across all 36 states with recurring economical figures attained with various food prices segment. A factor attributed to the lesser cost of food items compared to other states is the colassal level of agricultural activities in subject region.
Another factor resulting to the low cost of food items is due to the low purchasing power parity of consumers in this states. In northern Nigeria.
An economic analyst Zuhumnan Dapel said
“It’s true that much of the rise in poverty emerged from the northern part of the country. For the period that data is available, the gap in poverty between the regions opened after 1980”
“The equivalent number of poor people rose from 39.2 million to 112.47 million”
On the other hand states in Nigeria with highest food price within specific food items that are regularly consumed includes Bayelsa, Abuja and Akwa Ibom state. Food items such as medium sized eggs, sweet potatoes and rice experienced a 25.8%, 34.33% and 16.19% year on year increase.
Some factors instigating this price hike includes higher standard of living in urban settlements as well an increased level of demand for specific food items.
NOTE: All food items indicated includes
Agric eggs medium size
Agric eggs(medium size price of one)
Beans brown, sold loose
Beans :white black eye. sold loose
Beef Bone in
Bread sliced 500g
Bread unsliced 500g
Broken Rice (Ofada)
Catfish (obokun) fresh
Dried Fish Sardine
Evaporated tinned milk carnation 170g
Evaporated tinned milk(peak), 170g
Gari white,sold loose
Gari yellow,sold loose
Groundnut oil: 1 bottle, specify bottle
Mackerel : frozen
Maize grain white sold loose
Maize grain yellow sold loose
Mudfish (aro) fresh
Mudfish : dried
Palm oil: 1 bottle,specify bottle
Rice agric sold loose
Rice local sold loose
Rice Medium Grained
Rice,imported high quality sold loose
Tilapia fish (epiya) fresh
Vegetable oil:1 bottle,specify bottle
Wheat flour: prepacked (golden penny 2kg)
News Source: Rate Captain
Leave a Reply