Nigeria’s food inflation index has declined marginally to its lowest level in three months to 13.56 percent as prices of major food items dropped across the country, data from obtained the National Bureau of Statistics (NBS) states.
According to the NBS data compiled by BusinessDay, on a year-on-year basis, it declined marginally by 0.23 percent from 13.79 percent in May 2019 to 13.56 percent in June 2019.
While on a quarter on quarter basis, food inflation declined by 0.05 percent from 1.41 percent in May to 1.36 percent in June.
“Right now there is cassava glut in the market which has affected the prices of all it’s by products such as garri, fufu amongst others,” Aboidun Olorundenro, operations manager, Aquashoots Nigeria told BusinessDay in a telephone response to questions.
The marginal decline in the food inflation index was caused by drop in prices of bread and cereals, meat, fish, oils and fats, coffee, tea and cocoa, potatoes yam and other tubers and vegetables, the report says.
According to the United Nations Development Agency (UNDA) food agriculture commodity price watch forecast, inflationary food costs on some food commodities will ease in 2019 due to higher production levels and relatively strong us dollar.
But with the decline in food prices in Nigeria, some analysts still see the drop to be temporary, saying food prices are expected to trend upwards owing to increase in the prices of key farm inputs and flooding.
Josephine Okojie
