Food Prices Reach 8-Year High As Inflation Drops Further

Consumer Price Index (CPI), which measures rate of inflation in Nigeria, dropped for the sixth consecutive month in July, the National Bureau of Statistics (NBS) said on Monday.

According to the NBS report, inflation rate dropped to 16.05 percent from 16.1 percent in June, but food prices rose to its highest in eight years to 20.28 percent, up from 19.91 percent in June.

This is the biggest year-on-year increase in food prices since 2009, the statistics office said.

“The consumer price index (CPI) which measures inflation increased by 16.05% (year-on-year) in July 2017,” the report read.

“This was 0.05% points lower than the rate recorded in June (16.10%) making it the sixth consecutive decline in the rate of headline year on year inflation since January 2017.

“Food price pressure continued into July as all major food sub-indexes increased. The food index increased by 20.28% (year-on-year) in July, up by 0.37% points from the rate recorded in June (19.91%).

“This represents the highest year on year increase in food inflation since the beginning of the new series in 2009.

“The rise in the index was caused by increases in prices of bread and cereals, meat, fish, oils and fats, coffee, tea and cocoa, potatoes yam and other tubers and vegetables.”

Nigeria is currently battling a second year of recession and currency crisis worsened by dollar shortages and drop in crude oil price.

Godwin Emefiele, Governor of the Central Bank of Nigeria, stated publicly few months back, that the country will exit recession before the end of the third quarter of the year.