Food inflation eased to 39.53 percent, its lowest in five months, doused by a new harvest season in staple crops across the country.
This comes after prices of tomatoes, pepper, yam, garri and potatoes declined in various markets in the country in July/August.
Farmers say prices of more staples will drop in the coming months as farmers welcome new harvests of crops.
Prices of tomatoes have declined by 58 percent in Lagos, while yam prices dropped 56.25 percent from an average of N8,000 to N3,500 for a big tuber.
This drop in staples has eased food inflation in July to 39.53 percent, its lowest value since February 2024.
Read also: Food inflation will persist until crops germinate, says Agric Minister
According to the NBS, food inflation was lowest in Adamawa at 33.48 percent, Bauchi at 35.10 percent, followed by Benue at 36.41 percent, Nasarawa at 36.61 percent and Kano at 37.36 percent in July.
However, Sokoto, Jigawa, Enugu, Gombe and Abia, recorded the highest food inflation rate in the period under review.
The National Bureau of Statistics (NBS) consumer price index report shows that the average food inflation rate for Sokoto was 46.26 percent, followed by Jigawa at 46.05 percent, Enugu at 44.06 percent, Gombe at 43.40 percent and Abia at 43.22 percent.
In July, headline inflation eased to 33.40 percent, decreasing by 2.31 percent from 34.19 percent in June, making it the lowest record in 19 months. At the same time, food inflation dropped by 3.27 percent to 39.53, from 40.87 percent in June, its lowest value since February.
“The food inflation rate in July 2024 was 39.53% on a year-on-year basis, 12.55% points higher compared to the rate recorded in July 2023 (26.98%),” the NBS said.
According to experts, both headline and food inflation were bound to drop in July.
Food inflation, according to them, declined based on a new harvest season on staple crops as well as the 150-import-duty free window on maize, rice and wheat, among other crops. While headline inflation eased as a result of a high base effect.
Five states with the highest food inflation
Here are the top five states with the highest food inflation according to BusinessDay analysis of the Consumer Price Index report.
Sokoto
While food inflation eased in July in many states across the country, it remained high in Sokoto State, surging to 46.26 percent in the period under review from 43.38 in June.
Read also: Food inflation quickens to 40.8% as garri, bread prices rise
Northern states have been the target of banditry attacks in the last five years, making many farmers desert their farms for fear of their lives. This situation is increasing the food crisis, limiting food production and soaring food inflation.
A recent report by SBM Intelligence revealed that at least 1,356 farmers have been killed in northern Nigeria from 2020 to 2024.
On a month-on-month basis, average food prices increased 4.99 percent from an average of N922.8 in June to N968.9 in July.
Jigawa
Like Sokoto, Jigawa has been plagued with insecurity fueled by banditry attacks.
With 2.62 percent, average food prices increased from N890.6 in June to N923.9 in the period under review.
While food inflation increased to 46.05 percent from 41.18 percent in June, rising 11.8 percent in the period.
Enugu
Food inflation increased marginally in the coal city to 44.06 percent in July from 43.55 percent in June.
Month-on-month, the average cost of buying food increased 4.17 percent from N984.5 in June to N1025.6 in the period under review.
Gombe
Gombe with the slogan ‘Jewel in the Savannah’ is the fourth state with the highest food inflation in July.
The average cost of buying food increased 2.62 percent, month-on-month to N962.6 in July from N938 in June.
But food inflation declined 6.27 percent to 40.93 percent in July from 43.67 percent in June.
Read also: Top five states with highest food inflation in May
Abia
Popularly called ‘God’s Own State’, Abia State ranks last on the list of the top five states with the highest food inflation in July.
The average cost of buying food in the state grew 3.69 percent to N998 from N962.5 in June. In contrast, its food inflation declined 2.39 percent from 44.28 percent in June to 43.22 percent in the month under review.
