Transport and food prices on steady rise

The National Bureau of Statistics (NBS) has released its latest findings, revealing that average transportation fares and food prices continued to climb in June 2023 compared to the previous month. The data indicates significant increases in various modes of transportation and essential food items, impacting both commuters and consumers across the nation.

According to NBS’s Transport Fare Watch for June, the cost of commuting within the city by bus witnessed a substantial surge. The average fare paid per drop for bus journeys escalated by 97.88 per cent from N649.59 in May 2023 to N1,285.41 in June 2023. Meanwhile, intercity bus travel also experienced a noticeable hike of 42.09 per cent, with the average fare per drop increasing to N5,686.49 in June from N4,002.16 in May. Air travel was not spared from the trend, as the average fare for specified routes’ single journeys increased by 4.93 per cent from N74,948.78 to N78,640.54 during the same period.

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Notably, motorcycle transportation, commonly known as Okada, saw a significant cost increase as well. The average fare for Okada transportation reached N618.52 in June 2023, marking a substantial 33.14 per cent rise compared to May 2023’s rate of N464.55. Waterway passenger transportation also experienced a surge, with the average fare rising from N1,045.15 in May 2023 to N1,366.22 in June 2023.

Food Prices on the Rise

NBS’s Selected Food Price Watch for June sheds light on the mounting costs of essential food items. The average price of boneless beef per kilogram stood at N2,653.02 in June 2023, reflecting a significant year-on-year growth of 27.5 per cent from June 2022’s N2,079.93. On a month-on-month basis, the increase was 5.26 per cent from N2,520.52 in the previous month.

Tomato prices also witnessed a considerable surge, with the average price per kilogram rising by 24.8 per cent year-on-year, from N438.33 in June 2022 to N547.28 in June 2023. Notably, the month-on-month increase was 9.8 per cent.

Similarly, the average price of locally sold rice per kilogram rose by 32 per cent on a year-on-year basis, escalating from N460.17 in June 2022 to N608.20 in June 2023. On a month-on-month basis, the increase was 9.5 per cent from N555.18 in May 2023.

Impact and Considerations

The consecutive monthly increases in transportation costs and food prices highlight the challenges faced by both commuters and consumers. Rising fares may impact individuals’ daily budgets and could potentially lead to changes in travel habits. Additionally, escalating food prices may strain household budgets, potentially affecting food security for many families.

As these trends continue, it’s essential for policymakers and stakeholders to closely monitor these developments and consider strategies to mitigate their impact on the economy and citizens. Finding ways to manage inflationary pressures while ensuring accessibility to essential services is crucial in maintaining economic stability and the well-being of the population.

The data serves as a reminder of the need for informed economic policies and interventions to address these challenges and ensure the welfare of the nation’s citizens.