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Buharinomics: Food Prices Hit 9 Year High

3 Min Read
PRESIDENT BUHARI RECEIVES FIN, BUDGET AND CBN GOV 1A&B. President Muhammadu Buhari in Meeting with Chief of staff, Mallam Abba Kyari, Minister or Finance, Kemi Adeosun, Minister of Budget and National Planning, Senator Udoma Udo Udoma and Central Bank Governor, Mr Godwin Emefiele at the State House in Abuja. PHOTO; SUNDAY AGHAEZE/STATE HOUSE IN ABUJA. AUGUST 28 2017

The National Bureau of Statistics has released a report stating that the price of food stuffs in the country are potentially even further out of the reach of  the average Nigerian.

According to the NBS,  the increase in the Food CPI in July was up by 0.37 per cent over 19.91 per cent recorded in June.

An economic research note from investment management company, Vetiva noted the food price levels had not been this bad since 2008 during the drought.

Vetiva’s note said, “The last time food inflation was this high in the country, at 20.9 per cent in July 2008, was the peak of the 2007/2008 global food crisis brought on by harsh droughts in food-producing regions, higher energy costs, and increased speculation on food commodity prices.”

According to the NBS, inflation was down 0.5% y-o-y from 2016.

The NBS report stated: “On a month-on-month (MoM) basis, the headline index increased by 1.21 per cent in July from 1.58 per cent recorded in June. The urban index rose by 16.0 per cent YoY in the same month, down by 0.11 per cent point from 16.15 per cent recorded in June, while the Rural index increased by 16.08 per cent in July from 16.01 per cent in June.

“On MoM basis, the urban index rose by 1.25 per cent in July 2017, down by 0.35 per cent point from 1.60 per cent recorded in June, while the rural index rose by 1.18 per cent in July 2017, down by 0.39 per cent point from 1.57 percent in June.

“All Items less Farm Produce’’ or Core sub-index, which excludes the prices of volatile agricultural produce eased by 0.30 per cent during the month to 12.20 per cent points from 12.50 per cent recorded in June as all key divisions which contributes to the index increased.”

President Muhammed Buhari, yesterday met with his economic team including the Central Bank of Nigeria governor, Godwin Emefiele; Minister of Finance, Kemi Adeosun; and the Minister for Budget and Economic Planning, Udo Udoma.

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