Inflation: Food Prices Still Very High – NBS

The nation’s food inflation is still on the rise with food items prices skyrocketing.

The National Bureau of Statistics (NBS) said prices of food items such as yam, rice and beef witnessed increases in January and continued rising in February.

According to it, the average price of 1kg beef boneless, yearly, increased by 27.43 per cent from N1,922.2 in February 2022 to N2,445.96 in February this year, while the 1kg beef boneless increased by 1.12 per cent from N2,418.91 recorded in January .

Similarly, the average price of 1kg rice (local, sold loose) increased yearly by 19.30 per cent from N436.58 in February last year to N520.84 in February this year year.

Clearly, the prices of rice, beans, vegetables, and poultry products have been on a steady increase in the various markets across the country.

For example, the price of rice has risen from about N8,500 per 50 kilogramme bag in 2015 to roughly N45,000 per bag.

There was relief when the impact of scarcity of naira notes in the month of February forced traders to crash the prices of foodstuffs and other perishable items, to avoid selling at a loss.

Indeed, the prices of maize, guinea corn, millet and beans went down considerably.

Reports said prices of grains and other food items fell in Kebbi and Katsina states while the cash continued.

A bag of maize sold for about N19,000 as against the old price of N24,000,while bag of guinea corn sold at N14,000, whereas the old price was N18,000.

Also, a bag of beans went for N28,000 and N30,000, as against the old price of between N34,000 and N36,000, depending on quality. Due to the cash crunch, a big basket of fresh tomatoes sold for N12,000 at Mile 12 Market, Lagos.

This,however, has been short-lived with the availability of oil naira notes. The basket of tomatoes now goes for N13,000 to N18,000. Since March ended, the prices of foodstuffs have been on the rise.

Since the NBS reported in its consumer price index that inflation rose to 21.47 per cent in November, up from 21.09 per cent in October,the trend has continued.

According to Tradingeconomics.com,consumer Price Index CPI in Nigeria averaged 136.11 points from 1995 until 2023, reaching an all-time high of 517.40 points in February of 2023 and a record low of 14.36 points in January of 1995.

AFEX, a commodities market player, warned that the impact of flooding, devaluation of the naira, high logistics costs, and the social-political situation in the country will keep commodity prices at historically high levels.

In its Annual Commodities Outlook, the organisation warned that the price pressures were going to be exacerbated by the elections, causing some market uncertainty.

Head, Market Data and Research, AFEX, David Ibidapo, noted that inflationary pressures will continue to rise due to decline in the production of major grain commodities thereby reducing the supply level in the domestic market.

The Vice President, Financial Markets, AFEX, Oluwafunto Olasemo, said, “There is a growing imbalance between the food supply and the demand of the growing population, putting upward pressure on prices. Developing a holistic approach to mitigate food insecurity and improve the shocks to climatic change, inadequate financing, and low access to efficient markets is a priority.”