Food Prices Hit 8-year High Under Buhari

The National Bureau of Statistics, NBS, stated in its latest report released yesterday that food price pressure continued into July as all major food sub-indexes increased, with food inflation in the country rising by 20.28 per cent Year-on-Year (YoY) in July.

According to the NBS, this represents the highest year on year increase in food prices since 2009.

The report came on a day President Muhammadu Buhari charged the Finance Minister, Mrs. Kemi Adeosun, her Budget and Planning counterpart, Udoma Udo Udoma and Governor of Central Bank of Nigeria, CBN, Mr.  Godwin Emefiele, to rev up efforts to quickly steer the economy out of recession but expressed delight at the improvement the economy had made.

In the report, NBS noted that the food index in July was up by 0.37 per cent over 19.91 per cent recorded in June.

The report further stated that the rise in the food index was caused by increase in prices of bread and cereals, meat, fish, oils and fats, coffee, tea and cocoa, potatoes yam and other tubers and vegetables. “On a month-on-month basis, the food sub-index increased by 1.52 per cent in July, down by 0.47 per cent points from 1.99 per cent recorded in June. 

“The average annual rate of change of the food sub-index for the 12-month period ending in July 2017, over the previous 12 month average was 18.25 per cent, 0.38 per cent points from the average annual rate of change recorded in June (17.87) per cent,” the report stated.

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, economic research by Vetiva noted.