More Cause for Worry as Food Inflation Pushes Up to 39.93 Per Cent
- Nigeria's headline inflation rose to 34.6% in November, up from 33.8% in October 2024
- Food inflation is up to 39.93%, the persistent increase is sustained by rising prices in tuber crops and grains
- More than half the states, plus FCT have food inflation rates above 40%. Sokoto, Yobe and Edo are worse hit with 51.3%, 49.69%, and 47.77 respectively
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Nigeria’s inflation situation has worsened even further, with headline inflation surging to 34.6% in November, up 0.72 per cent from the 33.8% reported for October 2024.
According to the just-released Consumer Price Index (CPI) report, the headline inflation is 6.40% points higher than that of November 2023, which was pegged at 28.20%.
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The National Bureau of Statistics (NBS) report revealed that food inflation has also risen to 39.93%, up from 32.84% in November 2023. Month-on-month, the rate of increase was 2.98%, slightly lower than the 2.94% recorded in October.
The report also shows that more than half the states in Nigeria, plus FCT have food inflation rates above 40%. Sokoto state is the highest with 51.3%, Yobe next with 49.69%, and Edo with 47.77%. There was also Gombe with 46.63%, Kebbi with 46.29%, Zamfara with 46.01%, and Abia state with 46.0%.
Other states with food inflation rates above 40% include Ebonyi, Taraba, Bauchi, Jigawa, Enugu, Niger, Kaduna, Borno, Oyo, Anambra and Kano states.
Tuber crops, grains to blame for rise in food inflation
According to the NBS, the persistent increase is being pushed by an increase in the price of staple foods like Yam, cocoyam, water yam, and potatoes. Grain prices are also contributing factors, with the price of guinea corn, maize, and rice increasing further.
Other food items that increased in price include palm and vegetable oils, goat meat, dried beef, frozen chicken, powdered milk, and dried catfish.
Inflation, thus, continues to push forward, after the two-month reversal seen in July and August 2024. Nigeria had seen consistent months of rise in inflation up to June 2024, before a slight decline in the next two months.
By September 2024, the inflation rate continued its upward movement, reaching a new high of 32.7%.
This latest announcement implies that Nigerians will spend more to celebrate Christmas. The 12-month average food inflation rate was pegged at 38.67%, an 11.58% point increase from the 27.09% recorded for the same 12-month period the previous year.
Recall that SBM's jollof index stated in its 'Crisis on the menu' report that the cost of a pot of jollof rice for a family of five had gone up to N21,300. The headline inflation rate at that time was still 32.7%.
Prices of chicken, eggs to go higher
In related news, Legit.ng reported that Olufemi Adelayo, an expert, disclosed that the prices of chickens and eggs would become more expensive this Christmas.
In the last 12 months, chicken feed prices have increased by 250% due to scarcity and the rising cost of raw materials like soy and wheat.
Adelayo said traders would struggle to find a affordable price for Nigerians without running a loss because of the high cost of production.
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Source: Legit.ng
