Foodstuffs

Food prices increase as inflation falls to 17.93 percent in Nigeria, says NBS

*The National Bureau of Statistics discloses the rise in the food index May 2021 was caused by increases in prices of bread, cereals, milk, cheese, eggs, fish, soft drinks, coffee, tea and cocoa, fruits, meat, oils and fats and vegetables

Isola Moses | ConsumerConnect

Against the backdrop of factors, including continual attacks on farms cum farmers by heardsmen, foreign exchange scarcity and Naira devaluation contributing tumbling local food production, Nigeria’s inflation rate fell for the second consecutive month May 2021 to 17.93 percent from 18.12 percent recorded a month earlier.

ConsumerConnect reports the National Bureau of Statistics (NBS) Tuesday, June 15 stated that the prices of goods and services, measured by the Consumer Price Index (CPI) increased by 17.93 percent in May 2021 when compared to May 2020.

The NBS disclosed that the rise in the food index in May was caused by increases in prices of bread, cereals, milk, cheese, eggs, fish, soft drinks, coffee, tea and cocoa, fruits, meat, oils and fats and vegetables.

The agency announced that on a month-on-month basis, the food sub-index increased by 1.05 per cent in May 2021, up from 0.99 per cent recorded in April 2021.

According to the agency, though the scale of increase remained high, it was 0.05 per cent lower than what obtained a month earlier.

The NBS said there was no respite in terms of increase in food prices as food inflation rose in May to 22.28 percent, compared with 22.72 percent in April 2021.

It is also noted that inflationary pressures have never abated since the Muhammadu Buhari administration announced a shutdown of Nigeria’s porous land borders with all neighbours October 2019.

The Federal Government at the time considered the move as a strategy to spur mass production of food and other agricultural produce besides curbing smuggling and associated corruption.

There were also attacks on farms, Forex scarcity and Naira devaluation have contributed to seeing local food demand outweighing production, causing food prices to steadily rise in the country’s economy.

It stated: “The average annual rate of change of the Food sub-index for the twelve-month period ending May 2021 over the previous twelve-month average was 19.18 per cent, points from the average annual rate of change recorded in April 2021….”

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