The Central Bank of Nigeria (CBN) has stated that transportation cost is the primary instigator of food inflation in Nigeria.
The Governor of the CBN, Godwin Emefiele, revealed this while speaking at the first monetary policy committee (MRP) meeting of the year.
According to trading economics, Cost of food in Nigeria increased 17.37 percent in December of 2021 over the same month in the previous year. Food Inflation in Nigeria increased by 22.95 % in March 2021 over the same month in the previous year. The maximum level was 39.54 % and minimum was -17.5 %. Data published Monthly by National Bureau of Statistics.
However, despite the downward trend of food inflation in Nigeria from March 2021 to November 2021, Food Inflation spiked marginally in December 2021. The food inflation increase was caused by huge demand for food items in the festive period (demand pull inflation).
The apex bank also stated the marginal rise in inflation in december was of transitionary nature ( a bypass inflation) and was caused by the festive activities
Emefiele words in regard to food inflation and transportation cost; “prices at the farmgate were inline with expectations, however price at the marketplace is high.”
“If prices at the moment are high, it means there are some problems between the farm gate and the marketplace. We see logistics problems, particularly transport,”