Prices of goods, services still rising as inflation rate declines

Despite Nigeria’s inflation rate declining to 17.75 percent in June from the 17.93 percent recorded in May, prices of goods and services are still rising in double figures, according to latest statistics released by the National Bureau of Statistics (NBS).

Specifically, the food sub-index of the CPI rose by 21.83 percent year-on-year from 363.9 points in June 2020 to 443.4 points in June 2021, which has eroded the purchasing power of Nigerians.

A cursory look at the inflation report reveals that the food items driving the current inflationary pressure in the country include bread and cereals, potatoes, yam and other tubers, milk, cheese and eggs, fish, soft drinks, vegetables, oils and fats and meat amongst others.

Meanwhile, the food price report of the NBS shows food items that recorded over 25 percent year-on-year increase in price in the month of June 2021, with the price of beans surging by 66.47 percent year-on-year in June, the highest on the list while garri followed in the same vein with a 51.01 percent increase in price.

Maize, an important food item used in the production of many other human consumables as well as feeds for animals also surged by as much as 49.2 percent in the review period while the price of garri, onion, and palm oil recorded 40.3 percent, 35.3 percent, and 28.6 percent increase respectively.

A larger part of the problem of rising food prices has been attributed to insecurity in the food producing states in the country, with kidnappings and killings on the high in the northern region of Nigeria.