Food Inflation Rocks Nigeria’s Economy

 Food Inflation Rocks Nigeria’s Economy

Following a report published by the National Bureau of Statistics, the prices of food rose by 1.3 percent in December 2020,

The closely watched index rose sharply by 19.56% in December compared to 18.3% recorded in the previous month.

According to the report, “On a month-on-month basis, the food sub-index increased by 2.05% in December 2020, up by 0.01% point from 2.04% recorded in November 2020.

“The rise in the food index was caused by increases recorded in prices of bread and cereals, potatoes, yam and other tubers, meat, fruits, vegetable, fish and oils and fats.

“In terms of food inflation, Edo State also recorded the highest rise in inflation rate with 24.1%, followed by Kogi (23.16%), Sokoto (22.2%); while Kwara and Zamfara State recorded food inflation of 22.1% and 21.7% respectively.”

Nigeria, however began the year (January 2020) with a food inflation rate of 14.85 percent and closed it with 19. 55 percent.

The rise in food prices could be attributed to the restrictions imposed to control the spread of COVID-19. These restrictions suspended all economic activities and production. Also, the country had closed its land borders to control smuggling activities and illegal importation into the country. 

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Kehinde Ogunyale

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