In February 2024, Nigeria witnessed a significant rise in imported food inflation, reaching a peak of 29.8%, up from 26.3% in the previous month, marking a 352 basis points increase. Analysis conducted by Nairalytics, the research arm of Nairametrics, revealed that imported inflation has been on the rise for over four years, influenced by various internal and external factors.
This surge in imported food inflation has contributed to the headline inflation rate soaring to nearly a 28-year high of 31.7% during the review period. Both the core and food components of the inflation index experienced notable increases, with food inflation rising by 251 basis points to 37.92%, and core inflation, excluding farm produce and energy, increasing by 154 basis points to 25.13%.
Factors contributing to the inflationary pressure include the rising prices of staple foods like rice, cereals, yam, tubers, fish, oil, meat, fruits, and coffee, as well as increased costs in road transport, accommodation, medical services, and pharmaceutical products. Despite efforts by the Central Bank of Nigeria (CBN) to curb inflation and manage foreign exchange volatility through various policies, the inflationary trend continues to persist, posing significant economic challenges for the nation.
Source: Nairametrics