• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Business News

Skepticism and 3 Other Reasons Food Prices are still on the Rise

Chacha Wabara by Chacha Wabara
April 17, 2017
in Business News, Politics
Nigerian Agricultural Sector To Receive N84bn Boost

Food inflation

Share on FacebookShare on TwitterShare on Linkedin

Nairametrics| The good news last week was that March inflation figures released by the National Bureau of Statistics shows a second deceleration in as many months, dropping from 17.78% in February to 17.26% in March. With the decrease in inflation, the expectation would have been that food prices, which make up a major part of the consumer price index, would also reduce.

However, this was not the case as food prices rose by 2.21% — 22 points higher than in February – with notable increases in the prices of bread, cereals, milk, meat, fish, potatoes, cheese, and eggs observed, Daily Trust says. What could be responsible?

  1. Base year effect: According to analysts at the Financial Derivatives Company (FDC), the year-on-year figures show a decline in both core and food inflation, in spite of an increase in monthly inflation with the Base year effects remaining a major contributing factor to the slowing inflationary pace.
  2. Skepticism about CBN’s actions: In addition, FDC analysts noted that the effects of the CBN’s forex intervention have not yet been positively felt as manufacturers ‘await more clarity and sustainability in the market.’ Thus, many are still skeptical about how long the CBN can continue supporting the Naira. Sustained intervention may however instill belief in manufacturers and result in increased production.
  3. Stocks on hand need to be disposed: Most manufacturers still have stocks that they purchased at higher prices. They still want to sell these off at a profit before restocking at lower prices, which will then reflect lower rates.
  4. Harvest time is not yet here: This reason was given by the Chairman of the Nigerian Economic Summit Group (NESG), Mr. Kyari Bukar. He is of the opinion that most harvests will happen during the months of April and May. As a result, the effects of the FG’s efforts may not be evident until then. “We are seeing improvements and some government efforts are bearing fruits. I don’t think the impact of agriculture has as it will, until the second quarter, because most of the harvest happen around the April/May time frame.”

These reasons suggest that the increase in food inflation index, although might be present for a while, will eventually decline and represent the true state of the economy. Unless something else unforeseen happens.

RelatedStories

Single-Digit Inflation, Tier 3 Banks, and Why You Can’t Fight African Governments – Drinks & Mics

Single-Digit Inflation, Tier 3 Banks, and Why You Can’t Fight African Governments – Drinks & Mics

June 14, 2025
“MPR Should Be Over 30%!” — Esili Eigbe Sparks Fire on Drinks and Mics

“MPR Should Be Over 30%!” — Esili Eigbe Sparks Fire on Drinks and Mics

May 31, 2025

Follow us for Breaking News and Market Intelligence.
Tags: AgricultureCBN NigeriaConsumer GoodsInflation
Chacha Wabara

Chacha Wabara

Chacha Wabara-Ogbobine is a Legal practitioner with over 9years post call experience. A research Consultant, professional writer and a blogger at heart,owner of four thriving websites with well over 10years of experience. Totally in love with keeping fit and coaching weight loss enthusiasts. I love my quiet time, being with my kids, watching TV series for hours on end.

Related Posts

Single-Digit Inflation, Tier 3 Banks, and Why You Can’t Fight African Governments – Drinks & Mics
Digital Media

Single-Digit Inflation, Tier 3 Banks, and Why You Can’t Fight African Governments – Drinks & Mics

June 14, 2025
“MPR Should Be Over 30%!” — Esili Eigbe Sparks Fire on Drinks and Mics
Digital Media

“MPR Should Be Over 30%!” — Esili Eigbe Sparks Fire on Drinks and Mics

May 31, 2025
Nigeria secures World Bank’s approval for $2.25 billion loan to boost reforms 
Economy

World Bank: Global commodity prices to drop to six-year low by 2026  

April 30, 2025
President Tinubu reacts to Port Harcourt Refinery revival, orders reactivation of Warri, Kaduna Plants 
Economy

CBN governor Cardoso identifies inflation as most disruptive economic challenge in Nigeria 

April 28, 2025
Tinubu says petrol subsidy removed to reset Nigeria’s economy  
Economy

World Bank projects 3.6% economic growth for Nigeria in 2025, more optimistic than IMF’s forecast 

April 24, 2025
Cost of cooking pot of Jollof Rice in Nigeria rises by 13.7% to N12,373
Economy

A pot of jollof rice now costs N25,486 in Nigeria, up by19% in 6 Months

April 23, 2025
Next Post
BDCs Say $50,000 A Week, N10 Profit Margin And These 3 Other Steps Will Stop Round Tripping

BDC President Explains Why Naira May Strengthen This Week

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Emple
nlng
first bank








DUNS

Recent News

  • Alleged Fraud: Court grants forefeiture of N335 million, Galaxy Hospital, 5 Petrol Stations, lands  
  • Nigeria hits OPEC’s output quota of 1.5 million bpd in June 2025 
  • UniCal VC Prof. Florence Obi vows to resolve Dentistry induction crisis within few months 

Follow us on social media:

Recent News

Federal High Court, REA

Alleged Fraud: Court grants forefeiture of N335 million, Galaxy Hospital, 5 Petrol Stations, lands  

July 16, 2025
OPEC, crude oil production

Nigeria hits OPEC’s output quota of 1.5 million bpd in June 2025 

July 16, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics