- Bread, cereals, potatoes, yam, others are major inflation drivers
- Kogi, Kwara, Rivers record highest food inflation
Nigerians may have to battle hunger for a longer period as food inflation in Africa’s most populous country has continued to rise.
In January, food prices soared as food inflation reached an all-time high of 35.41 percent, rising by 1.48 percent from 33.93 percent in December 2023.
Month on Month, food inflation increased to 3.21 percent in January 2024; 0.49 percent higher than 2.72 percent recorded in December 2023.
According to data published by the National Bureau of Statistics Thursday, the rise in food inflation was caused by increases in prices of Bread and cereals, Potatoes, Yam and other Tubers, Oil and fat, Fish, Meat, Fruit, Coffee, Tea, and Cocoa. On a month-on-month basis, the Food inflation rate settled at 3.21 percent, relative to the 2.72 percent m/m in December 2023.
In January 2024, food inflation on a Year-on-Year basis was highest in Kogi (44.18%), Kwara (40.87%), and Rivers (40.08%), while Bauchi (28.83%), Adamawa (29.80%) and Kano (30.08%) recorded the slowest rise in Food inflation on Year-on-Year basis.
On a Month-on-Month basis, however, January 2024 Food inflation was highest in Ondo (4.69%), Osun (4.59%), and Edo (4.58%), while Bayelsa (0.24%), Yobe (0.97%) and Ogun (1.44%) recorded the slowest rise in Food inflation on Month-on-Month basis.
Nigeria’s headline inflation rose by 98bps in January to 29.90 percent y/y (December: 28.92% y/y). The outturn is 40bps higher than Bloomberg’s median consensus estimate (29.50% y/y). Likewise, on a month-on-month basis, headline inflation increased by 35bps to 2.64 percent (December: 2.29% m/m).
In the same vein, the core inflation (All items less farm produce and energy) rose by 50bps to 23.59 percent y/y (December: 23.06% y/y). The highest increases were recorded in prices of Passenger Transport by Road, Medical Services, Actual and Imputed Rentals for Housing, Pharmaceutical products, Accommodation service, and Passenger Transport by Air. On a monthly basis, the core index settled higher by 40bps to 2.24% m/m in January (December: 1.82% m/m).
President Bola Tinubu on Thursday in Abuja met all 36 state governors under the auspices of the Nigeria Governors’ Forum at the Council Chamber of the Aso Rock Village to address the hunger situation in the country.
The meeting which was the second after the inauguration of the administration follows the recent hike in food prices and economic hardship and pockets of insecurity recorded nationwide.
