Selected Food Prices Watch for June reveals Significant Price Increase
The National Bureau of Statistics (NBS) Selected Food Prices Watch for June 2024 reveals a notable surge in food prices, indicating a decline in the welfare of Nigerians.
The cost of 1kg of locally sourced brown beans has increased to N2,292.76, reflecting a 14.11% rise month-on-month (MoM) from N2,009.23 in May 2024. Likewise, the price of 1kg of tomatoes has escalated to N2,302.26, representing a substantial 55.59% MoM increase from N1,479.69. Irish potatoes have seen a 51.92% MoM increase, now priced at N2,423.27, up from N1,595.07. Additionally, the cost of a tuber of yam has risen to N2,021.55, marking a 52.87% increase from N1,322.36 in May.
This rise in food prices is a significant contributor to inflation in the country, driven by elevated production costs and insecurity in agricultural regions. Regional price variations can be attributed to transportation expenses, fluctuations in local supply and demand, and market conditions.
To mitigate the rapid escalation of food prices, the government should explore strategies such as implementing price controls, providing subsidies for agro-allied sectors, enhancing investment in agriculture, and revising import tariffs to reduce the costs of essential food items.
These measures aim to stabilize food prices and improve national welfare in light of ongoing economic difficulties. Furthermore, the increase in food prices during June 2024 coincides with a period when union workers were advocating for a higher minimum wage, suggesting that food vendors may be incorporating the anticipated wage adjustments into their pricing.
