Food inflation thickens month-on-month
There are further indications that inflationary pressures are stepping up, driven by the food sector, even though monthly headline reports by the National Bureau of Statistics (NBS) indicates downwards trend on Year-on-Year, YoY, bases.
In its selected food price watch data for August 2018, the bureau stated: “The average price of one dozen of medium size agric eggs, decreased YoY by 2.28 percent and increased month-on-month (MoM) by 0.50 percent to N474.13 in August 2018 from N471.75 in July 2018 while the average price of piece of agric eggs medium size (price of one) decreased YoY by 2.62 percent and increased MoM by 1.39 percent to N41.79 in August 2018 from N41.22 in July 2018.”
This means that while the price rose in August 2018 against the previous month (July), it was lower compared to the same month last year.
NBS also stated: “The average price of 1kilogram (kg) of tomato decreased YoY by 21.94 percent and increased MoM by 0.11 percent to N336.65 in August 2018 from N336.29 in July2018. “The average price of 1kg of rice (imported high quality sold loose) decreased YoY by 2.43 percent and increased MoM by 1.14 percent to N375.02 in August 2018 from N370.79 in July 2018.”
The data also revealed that the average price of 1kg of yam tuber decreased YoY by 14.68 percent and MoM by 4.32 percent to N292.97 in August 2018 from N280.83 in July 2018.
This is much in line with the recent Consumer Price Index (CPI) report of the NBS which stated that the composite food index rose by 13.16 percent in August 2018 and the rise in food index was caused by increases in prices of bread and cereals, potatoes, yam and other tubers, meat, vegetables, fish, fruits and oils and fat.
The CPI stated: “The composite food index rose by 13.16 percent in August 2018 compared to 12.85 percent in July 2018.
“This rise in the food index was caused by increases in prices of bread and cereals, potatoes, yam and other tubers, meat, vegetables, fish, fruits and oils and fat.
“On MoM basis, the food sub-index increased by 1.42 percent in August 2018, up by 0.02 percent points from 1.40 percent recorded in July.”