Food Inflation Hits 20.28% as Price Pressure Continues
By Dipo Olowookere
Data released by the National Bureau of Statistics (NBS) on Monday, August 28, 2017, revealed that food price pressure continued into July as all major food sub-indexes rose.
Specifically, the Food Index increased by 20.28 percent (year-on-year) in July, up by 0.37 percent points from the rate recorded in June (19.91 percent).
The NBS said this represents the highest year on year increase in food inflation since the beginning of the new series in 2009.
The rise in the index was caused by increases in prices of bread and cereals, meat, fish, oils and fats, coffee, tea and cocoa, potatoes yam and other tubers and vegetables.
On a month-on-month basis, the Food sub-index increased by 1.52 percent in July, down by 0.47 percent points from 1.99 percent recorded in June.
The average annual rate of change of the Food sub-index for the twelve-month period ending in July 2017 over the previous twelve month average was 18.25 percent, 0.38 percent points from the average annual rate of change recorded in June (17.87) percent.
The ”All Items less Farm Produce” or Core sub-index, which excludes the prices of volatile agricultural produce eased by 0.30 percent during the month to 12.20 percent points from 12.50 percent recorded in June as all key divisions which contributes to the index increased.
On a month-on-month basis, the Core sub-index increased by 1.00 percent in July, 0.32 percent points lower from 1.32 percent recorded in June.
The highest increases were recorded in clothing materials and articles of clothing, furniture and furnishing, books and stationary, medical services, glassware, tableware & household utensils, accommodation services and household textiles.
The average 12 month annual rate of rise of the index was recorded at 15.80 percent for the twelve-month period ending in July 2017, 0.42 percent points lower from the twelve month rate of change recorded in June.