CEM REPORT, AGROFOOD | Food inflation in Nigeria has slowed by 0.54 per cent to 1.91 per cent at the end of October 2023 from 2.45 per cent recorded in September.
Core Inflation also slowed to 1.39 per cent in the same month compared to September 2023 which stood at 2.22 per cent. Recording a decline of 0.83 per cent.
The data is contained in the recently released Consumer Price Index October 2023 report by the National Bureau of Statistics (NBS).
NBS attributes the decline in food inflation in October to a fall in the average prices of fruits, oil and fat, coffee, tea and cocoa, bread and cereals.
The decline further affirms that the purchasing power of average Nigerians has been critically injured causing a shift to only basic food necessity.
However, on a year-on-year basis food inflation lept 7.80 per cent points higher to hit 31.52 per cent compared to 23.72 per cent recorded in October 2022.
The increase is attributed to increased demand for certain food items with stirred-up prices.
“The rise in Food inflation on a year-on-year basis was caused by increases in prices of Bread and cereals, Oil and fat, Potatoes, Yam and other Tubers, Fish, Fruit, Meat, Vegetables and Milk, Cheese and Eggs.”
Meanwhile, the average annual rate of Food inflation for the twelve months ending October 2023 over the previous twelve-month average was 26.33 per cent, which was a 6.50 per cent point increase from the average annual rate of change of 19.83 per cent recorded in October 2022.
State Food Inflation
The NBS data reports that on a month-on-month basis, food inflation was highest in Yobe at 5.35 per cent, Sokoto at 3.68 per cent and Jigawa at 3.45 per cent.
“while Edo (0.95%), Katsina (1.03%) and Rivers (1.10%) recorded the slowest rise in inflation on a Month-on-Month basis.”
On a year-on-year basis, food inflation was highest in Kogi, Kwara and Lagos recording 41.74 per cent, 38.48 per cent, and 37.37 per cent respectively.
“while Borno (24.41%), Kebbi (24.90%) and Jigawa (25.10%) recorded the slowest rise in Food inflation on a YEAR-on-Year basis.”
Core inflation, which excludes the prices of volatile agricultural produce and energy in October 2023 declined by 0.83 per cent.
Core Inflation slowed to 1.39 per cent in October 2023 compared to September 2023 which stood at 2.22 per cent.
However, on a year-on-year basis core inflation in the review period stood at 22.58 per cent an increase of 5.12 per cent when compared to the 17.46 per cent recorded in October 2022.
“The highest increases were recorded in prices of Passenger Transport by Road, Medical Services, Passenger Transport by Air, Actual and Imputed Rentals for Housing, Pharmaceutical products, etc.”
The average twelve-month annual inflation rate ending October 2023 was 19.98 per cent, this was 4.60 per cent points higher than the rate recorded for the twelve-month average ending October 2022 (15.38%).