Rising cost of food pushes inflation to a 2-year high of 13.7pp

Rising cost of food pushes inflation to a 2-year high of 13.7pp – Inflation rate, the average rate on change in the prices of goods and services has risen for the 13th consecutive straight run, this time, to a more than two-year high of 13.7  per cent. The major driver, food rose by 16.67 per cent in a 12 month period ended September.

Food supply chain has been ensnare terribly on all sides. First, the closure of the land borders since 2019 ensures that cheap food was barricaded out if the country.

Secondly, President Muhammadu Buhari’s order to the central bank to stop providing foreign exchange for food and fertilizer imports again cut short the inflow of cheap food.

Thirdly, the on-going raid by herders on farms also ensured that food became very scarce in the country.

Although government had said, the policies are geared towards self-food sufficiency, the immediate impact has left Nigerian with fixed salaries deflated while food prices continue to soar.

The rocketing prices of food items, notably bread, cereals, potatoes, yam and other tubers, meat, fish, fruits and oils and fats, accounted most for the rise in inflation in September, the National Bureau of Statistics (NBS) said in its Consumer Price Index September 2020.

Read also: Nigeria’s inflation rate rises to 12.56% – NBS

Findings revealed that a big basket of Oval-shaped tomatoes now sells for an average of N17, 000, indicating a 6.3 per cent increase in price when compared to N16, 000 recorded in September. A big bag of Melon increased by 22.4 per cent, to sell for an average of N46, 500.

Also a carton of Turkey increased by 5.8 per cent to sell for an average of N18, 333, compared to an initial average of N17, 333 recorded in September 2020, and carton of full Chicken that was sold for an average of N14, 000 two weeks ago, now sells for an average of N14, 500, representing a 3.6 per cent increase in price.

A big bag of Bush mango seed, popularly known as “Ogbono” now sells for N100, 000 at Mile-12 market. A 5.3 per cent increase compared to N95, 000 reported earlier, while a big bag of dry Onions increased by 48 per cent to sell for an average of N55, 500, compared to an initial average of N37, 500.

It was also gathered that a big bag of new Onions spiked by 60.8 per cent to sell for an average of N41, 000 as against the N25, 500 it was initially sold for. A big bag of Pepper increased by 9.7 per cent to sell for an average of N17, 000, while a medium-sized bag sells for an average of N9, 000 – a 38.5 per cent increase in price.

Meanwhile, a big basket of Sweet Potato now sells for an average of N13, 500, from an initial average of N14, 000 – a 3.6 per cent reduction in price, while the price of a big basket of Irish Potatoes reduced by 29.5 per cent to sell for an average of N21, 500, compared to N30, 500 recorded in September.

Similarly, a 50kg bag of Royal Stallion Rice still sells for an average of N30,333, Mama Gold (N29,750), Caprice (N29,667), and Mama’s Pride (N25,500). A big sized bag of Brown Beans still sells for an average of N33, 000.