Recession: Price Of Foodstuffs Soars As Naira Hits N517 Per Dollar

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The prices of foodstuffs – kerosene, bread, meat, fish, others, in the market have suddenly risen to an outrageous price while the forex hits a maximum high of N517 per $1 in the corrupted parallel markets.

This is reportedly the driving force behind the almost unaffordable price of food in Nigeria, plus the increase in prices of petroleum products, and other goods and services which have been on the rise since 2015. Now the rate of inflation has risen from 9.3 percent in October 2015 to 18.55 in December 2016.

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In a market survey, the increase in the prices of foodstuffs between 2015 to 2016 are listed as thus:

  • 50 kilogrammes of Garri rose by 285 percent. From N3, 900 in January 2016 to N15, 000 in January 2017.
  • 50 kilogrammes of beans rose by 33 percent. From N13, 500 in January 2016 to N18, 000 Jan. 2017.
  • 25 litres of Palm Oil rose by 208 percent. From N6, 500 in January 2016 to N17,500 last month.

The National Bureau of Statistics (NBS) confirmed the development on Wednesday in its Consumer Price Index report for January 2017, which shows that prices of essential commodities rose at a faster pace in January pushing up the inflation rate to 18.72 percent.

A full NBS report stated thus:

“The Consumer Price Index (CPI), which measures inflation, increased by 18.72 percent (year-on-year) in January 2017, 0.17 percentage points higher from the rate recorded in December 2016 (18.55) percent. Increases were recorded in all COICOP divisions that yield the Headline Index.

“Communication, Restaurants and Hotels again recorded the slowest pace of growth in January, growing at 5.1 percent and 8.4 per cent (year-on-year) respectively.”

However, it informed that the faster pace of growth in headline inflation, year on year, were foodstuffs such as bread and cereals, meat, fish, oil and fats; potatoes, yam and other tubers; wine and spirits, clothing materials and accessories, electricity, cooking gas, liquid and solid fuels, motor cars and maintenance, vehicle spare parts, fuels and lubricants for personal transport equipment, passenger transport by road.

“On a month on month basis, headline inflation was driven by passenger transport by air, fuels and lubricants for personal transport equipment, liquid fuels, cooking gas, oil and fats, fruits, cheese and eggs, fish, meat, bread and cereals.”

Among other commodities, NBS recorded the highest increases in Housing, Water, Electricity, Gas and other fuels; while Education and Transport keep growing at 27.2, 21.0 and 17.2 percent respectively.

The report continued:

“It should be noted that the Headline Index is made up of the Core Index and Farm Produce items. As Processed Foods are included in both the Core and Food sub-indices; this Implies that these sub-indices are not mutually exclusive.”

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The report further stated that the corresponding 12-month year-on-year average percentage change for the urban index increased from 17.05 percent in December to 17.91 percent in January 2107, while the corresponding rural index increased from 14.54 percent in December to 15.18 percent in January.

Forex Inflation

Inflation Floods Foodstuffs Market Yesterday As Naira Deteriorate To N517 Per Dollar

Despite Bureaux-de-Change, BDC, optimism that the naira will appreciate against the dollar, Wednesday recorded a new depreciation of the naira against the dollar – N517 per $1, at the parallel market. While BDC rate remained N399 per dollar.

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