Price of food continues to rise in Nigeria — Statistics Bureau

The pockets of Nigerians have continued to thin out as the cost of food rose month after month since March 2014.

Once again, the Food index edged higher to 9.9 percent in July from 9.8 percent in June.

People generally paid more for items like bread and cereals, meats, and fish groups.

The pace of the increase, the Nigerian Bureau of Statistics [NBS], said was weighed upon by slower increases in the dairy, sugar, jam, honey, chocolate and confectionery; and coffee, tea and cocoa groups.

“After increasing at a faster pace for the previous three months, the pace of price increases measured by the ‘All items less farm produce’ or Core sub-index eased in July,” a report from the National Bureau of Statistics said.

Prices, it added, rose by 7.1 percent (year-on-year), a full percentage point lower than the rate recorded in June, while slower price increases in the alcoholic beverages, tobacco and kola; clothing and footwear; housing water, electricity.

Gas and other fuel; and many other divisions contributed to the muted increases in the Core sub-index.

On a month on month basis, the agency said price increases in the headline index eased for the second consecutive month, with prices increasing by 0.65 percent in July, lower from a 0.77 percent increase in June.

The slower price increase of the Headline index in July were equally driven by a slower rise in all areas that contribute to the index, with Urban prices (year-on-year) increasing at a faster pace for the third consecutive month in July.

Rural prices, on the other hand, followed a similar trend over the period, increasing by 8.1 percent from 8.0 percent in June. On a month on month basis, the bureau said the pace of increases in Urban prices eased in July after advancing faster for two consecutive months, with Urban Headline index increasing by 0.70 percent, about 0.1 percentage points lower from June.

The Rural All-items index rose at a slower pace by 0.60 percent in July, down from 0.74 percent in June.

The percentage change in the average composite CPI for the 12-month period ending in July 2014 over the average of the CPI for the previous twelve-month period was recorded at 8.0 percent, unchanged from the average 12-month rate of change recorded in June 2014.

The corresponding 12-month year-on-year average percentage change for the Urban index stood at 8.1 percent in July, unchanged in the previous month, while the corresponding Rural index eased to 7.8 percent for the Month of July.

Food prices, as observed by the Food sub-index, the report stated, rose by 9.9 percent (year-on-year) in July, marginally higher from 9.8 percent recorded in the previous month.

“This is the highest price increase observed in a year, and an advancement in the pace of price increases for the fifth consecutive month,” the report said.

It attributed the price increases during the month to price increases in fruits, vegetables, and potatoes, yam and other tuber groups.

On a month-on-month basis, food prices increase recorded approximately the same rate of change for four consecutive months by 0.8 percent, with highest price increases recorded in the Fruits, Meats, Fish, and Potatoes, Yam and Other Tubers groups.

On average annual rate of change of the Food sub-index for the 12-month period ending in July 2014, the report said it was 9.5 percent, unchanged from the previous month.

After increasing for three consecutive months, the pace of increase of “All items less Farm Produce” or Core index, which excludes the prices of volatile agricultural products slowed during the month under review.

Prices rose by 7.1 percent, down from 8.1 percent in June, indicating the slowest price increase recorded since the beginning of the year.

Price increases on a month-on-month basis also slowed to this year’s low, as prices rose by 0.2 percent, down by 0.5 percentage points from June.

Also, Nigeria’s consumer price index, CPI, which measures inflation rate in the country, rose 0.1 percentage points from 8.2 percent in June to 8.3 percent in July (year-on-year), latest statistics by the NBS shows.

The NBS, in its latest edition of the statistical news released late on Sunday, said the rise represented the fifth consecutive month of year-on-year increases in the headline inflation index.

The Bureau indicated that the faster pace of price increases recorded in the Headline inflation index were attributed to an increase in multiple divisions mirrored by the Food sub-index observed in movements in food prices between February and July.

The report contains the revised CPI based on Nigeria Living Standard Survey (NLSS) conducted between 2003 and 2004.


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