Consumer price index (CPI) data for January 2024 was recently issued by the National Bureau of Statistics (NBS), and it showed a notable increase in the price of imported food within the Nigerian economy.
The average price index for imported food increased dramatically over four years, from January 2020 to January 2024, more than doubling from 337.8 to 692.6. This represents an unparalleled increase of 105.03% within the examined period.
A key economic indicator, the Consumer Price Index (CPI) tracks how prices for a market basket of goods and services, including food, have changed on average over time for urban consumers.
The sharp increase in the index of imported food from 337.8 in January 2020 to 692.6 in January 2024 highlights the significant pressure on inflation in the food industry, especially concerning food imported into Nigeria.
Furthermore, from 16.12% in January 2020 to 26.29% in January 2024, the inflation rate for imported food items—a particular component of overall inflation that gauges the pace at which the cost of imported foods grows over time—rose.
The increased rate of growth in the pricing of imported food goods is further highlighted by this 10.17%-point increase.
The CPI data also reveals a noteworthy increase in Nigeria’s inflation rate for imported food, which increased by 7.8% points in less than a year, from 18.49% in January 2023 to 26.29% in January 2024.
During this time, the price index also increased, rising from 548.4 in January 2023 to a much higher number in January 2024.
In addition, a month-over-month analysis shows that food inflation increased by 1.39% points between December 2023 and January 2024, demonstrating a continuous upward trend.
Nigeria is currently experiencing a notable increase in the average price index and inflation rate for imported food, which is concerning for consumers—particularly those in metropolitan areas who rely mostly on imported food staples.
In addition to putting a strain on household budgets, this spike also signals potential wider economic repercussions, such as the country’s balance of payments becoming unstable and current account deficits getting worse.
The Trade Union Congress (TUC) has requested the Federal Government to start the immediate importation of necessary food goods as a mitigating step in response to the growing pressure of rising food prices.
Nigeria is currently experiencing a notable increase in the average price index and inflation rate for imported food, which is concerning for consumers—particularly those in metropolitan areas who rely mostly on imported food staples.
In addition to putting a strain on household budgets, this spike also signals potential wider economic repercussions, such as the country’s balance of payments becoming unstable and current account deficits getting worse.
The Trade Union Congress (TUC) has requested the Federal Government to start the immediate importation of necessary food goods as a mitigating step in response to the growing pressure of rising food prices.
