Food inflation hits two-year high as Akwa Ibom records price drop

June 17

11:58 2020

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The rate at which the prices of food items increased in May 2020 was the fastest since April 2018.

According to the consumer price index report released by the National Bureau of Statistics on Wednesday, food inflation in May stood at 15.04 percent compared with 15.03 percent in April.

The last time food inflation rate was in this region was April 2018 when it hit 14.8 percent from 16.08 percent in March 2018.

“This rise in the food index was caused by increases in prices of bread and cereals, potatoes, yam and other tubers, oils and fats, fruits, fish and meat,” the report read.

“In May 2020, food inflation on a year on year basis was highest in Abuja (18.13 percent), Osun (17.40 percent) and Imo (17.13 percent), while Abia (13.46 percent), Bauchi (12.97 percent) and Kaduna (12.97 percent) recorded the slowest rise.

“On a month-on-month basis, however, May 2020 food inflation was highest in Ebonyi (3.43 percent), Bayelsa (3.21 percent) and Edo (2.74 percent), while Zamfara (0.22 percent) and Abia (0.21 percent) recorded the slowest rise with Akwa Ibom recording price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate).”

The consumer price index which measures inflation increased by 12.4 percent in May 2020, a 0.06 percentage point increase from the 12.34 percent recorded in April.

The urban inflation rate increased by 13.03 percent (year-on-year) from 13.01 percent recorded in April 2020, while the rural inflation rate increased by 11.83 percent in May from 11.73 percent in April.

Core inflation, which excludes the prices of volatile agricultural produce stood at 10.12 percent in May 2020, up by 0.14 percentage points when compared with 9.98 percent recorded in April 2020.

The highest increases were recorded in prices of pharmaceutical products, medical services, repair of furniture, hospital services, passenger transport by road, motor car, bicycles, maintenance and repair of personal transport equipment, passenger transport by sea and inland waterways, paramedical services, motorcycles and hairdressing salons and personal grooming establishment.