Price of food items has increased for the 17th consecutive month, resulting the food inflation to rise at 20.6 percent in January , the highest since September 2019.
Obinwannem news yesterday, made a report on Food inflation hits 20.6% as price increase prevails representing about 0.71% points above 15% in December 2020.
The National Bureau of Statistics, NBS, confirmed this in its consumer price index (CPI) report for January 2021 released yesterday noting that the rise in the food inflation was caused by increase in price of bread and cereals, potatoes, yam and other tubers, meat, fruits, vegetables, fish, oil and fats.
According to Analysts, increase on food prices will prevail due to insecurity in the country, and the approaching planting season.
NBS in a statement stated that the consumer price index, CPI, which measures inflation increased by 16.47 percent (year-on-year) in January 2020(15.75 percent).
Increase were also recorded in all COICOP division that yielded the headline index.
Subsequently, the composite food index rose by 20.57 percent in January 2021 compared to 19.56 percent in December.
On a month-on-month basis , the food index increased by 1.83 percent in January 2021; down by 0.22 percent points from 2.05 percent recorded in December 2020.
However, Analysts at Financial Derivau Company (FDC) said, “the rate of inflation is expected to slow as interest rate rises, and consumption declines. Petrol prices are likely to rise further towards ₦200 per litres, based on high crude oil price.
As planting season approaches, coupled with the insecurity crisis in the country, food supply will decline, and food prices will continue to increase.”
Lolo Ijeoma Njoku reporting, Obinwannem News