Food Inflation Rose Significantly in the Month of August
The Selected Food Price Watch for August 2024, published by the National Bureau of Statistics (NBS), indicates a notable rise in food inflation and food prices, reflecting a deterioration in the average welfare of Nigerians.
The cost of 1 kg of locally sourced brown beans saw a month-on-month (MoM) increase of 5.31%, climbing from N2,444 in July 2024 to N2,574. Similarly, the price of 12 medium-sized agricultural eggs surged by 5.48% MoM, rising from N2,170 in July to N2,289 in August.
Additionally, 1 kg of local rice experienced a price hike of 3.65% MoM, reaching N1,831 in August 2024. Regionally, Akwa Ibom reported the highest price for beans at N3,276, while Adamawa had the lowest at N1,710 per kg. For agricultural eggs, Jigawa State recorded the lowest price at N1,786, whereas Niger State had the highest at N2,996.
The observed increases in prices can be linked to escalating transportation costs, fluctuations in the Naira’s exchange rate, and insecurity affecting agricultural lands.
The persistent rise in food inflation and food prices poses significant risks to the welfare of Nigerians and the overall economic development. Low-income households are particularly vulnerable to these price hikes, which can lead to diminished purchasing power, heightened food insecurity and malnutrition, and an exacerbation of inequality.
It is imperative for the government to enact policies aimed at enhancing agricultural productivity over the long term. Such measures should encompass subsidies for agro-allied sectors, increased investment in agricultural infrastructure, and the reduction of tariffs on essential food items. SOURCE: CSEA AFRICA
