Food Prices Hit 9 Year High

According to the NBS, the increase in the Food CPI in July was up by 0.37 per cent over 19.91 per cent recorded in June.
An economic research note from investment management company, Vetiva noted the food price levels had not been this bad since 2008 during the drought.
Vetiva’s note said, “The last time food inflation was this high in the country, at 20.9 per cent in July 2008, was the peak of the 2007/2008 global food crisis brought on by harsh droughts in food-producing regions, higher energy costs, and increased speculation on food commodity prices.”

According to the NBS, inflation was down 0.5% y-o-y from 2016.

The NBS report stated: “On a month-on-month (MoM) basis, the headline index increased by 1.21 per cent in July from 1.58 per cent recorded in June. The urban index rose by 16.0 per cent YoY in the same month, down by 0.11 per cent point from 16.15 per cent recorded in June, while the Rural index increased by 16.08 per cent in July from 16.01 per cent in June.
“On MoM basis, the urban index rose by 1.25 per cent in July 2017, down by 0.35 per cent point from 1.60 per cent recorded in June, while the rural index rose by 1.18 per cent in July 2017, down by 0.39 per cent point from 1.57 percent in June.
“All Items less Farm Produce’’ or Core sub-index, which excludes the prices of volatile agricultural produce eased by 0.30 per cent during the month to 12.20 per cent points from 12.50 per cent recorded in June as all key divisions which contributes to the index increased.”

President Muhammed Buhari, yesterday met with his economic team including the Central Bank of Nigeria governor, Godwin Emefiele; Minister of Finance, Kemi Adeosun; and the Minister for Budget and Economic Planning, Udo Udoma.