• Friday, March 29, 2024
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BusinessDay

Seasonality, security concerns trigger food prices to 13-month high in May

food prices

Sade Akintoye, a businesswoman and mother of two kids went on her monthly food shopping for the family. But when she tried to purchase some few items like Fish, Milk, cheese eggs, etc. she discovered that the prices had increased than what it was earlier.

The reasons are not far-fetched as analysts have attributed the increase in food prices to the planting season coupled with elevated security threats in the food producing states which resulted in a decline in food supply, thereby leading to increase in prices and increased seasonal demand, especially during the Ramadan celebrations pushed up commodity prices

BusinessDay analysis of the Monthly food inflation report by the National Bureau of Statistics showed that food prices rose to a 13 months high to 13.79 percent in May 2019 from 14.80 percent in April 2018.

Ayo Akinwunmi, head of research, FSDH Merchant Bank said, “When you look at historical tread, usually in the time of May, food index always go up on the account of the commencement of the raining season and planting season,”

“And we have also noticed that in the last few weeks there have been insecurity challenges in the country that has also led to escalated food prices,” Akinwunmi said.

Ayorinde Akinloye, a consumer goods analyst at Lagos-based CSL Stockbrokers in his own opinion said that flooding has increased significantly in the middle belt and Ramadan exacerbated food price pressures last month.

The climate change which the country is experiencing affected the normal timing of planting season which usually starts between March-April but due to the delay in rainfall, it started in May.

On the part of insecurity, For example, while the herdsmen attack is on-going in many parts of the country, the Boko Haram is terrorising people in the North-East and banditry is ravaging states in the North-West.

“Most of the harvest of last year has reduced in quantity and we are just planting new ones for the season,” Emmanuel Ijewere, vice president of the Nigerian AgriBusiness Group (NABG) said.

On a state level, on a year-on-year basis, Kaduna, Kebbi Gombe had the highest food prices in Nigeria while Kogi, Rivers and Abia recorded the slowest rise in inflation.

On month on month basis however, May 2019, states with the highest was Kano, Gombe and  Kaduna , while Kogi  and Benue recorded the slowest rise with Kwara recording food price deflation or negative inflation (general decrease in the general price level of goods and services or a negative inflation rate).

 

BUNMI BAILEY