Inflation ‘decelerates’, defies market reality

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Again, the October inflation rate defied market reality as data released by the National Bureau of Statistics (NBS), yesterday, showed prices

Figures contradict global trend • Worst days ahead, farmers warn• ‘Figures doctored to achieve predetermined objective’Amid escalating prices, the October Consumer Price Index , a measure that examines the weighted average of prices of a basket of goods and services, showed inflation decelerated to 15.99 per cent in October 2021 as against 16.63 per cent recorded in September.

Prices of basic food items increase at a double-digit percentage every other week. A market survey conducted by The Guardian revealed that the cost of protein had increased by almost 100 per cent in the last one year. The same thing applies to certain plant-based food crops such as beans. At a popular supermarket in Lagos, an 800-900gm sachet of milk is between N2,300 and N3,000, depending on the brand. About a year ago, the price of the essential commodity was in the range of N1,700 and N2,000.

In Ibadan, Oyo State, findings revealed that a crate of medium-sized eggs costs about N1,700, while a crate of big eggs is sold for between N1,900 and N2,000. The same price range applies in Kwara State. But in Abuja, a crate of eggs is about N2,500, while a kilogramme of chicken is about N3,000. The percentage increase across markets is between 40 and 70 per cent.

On its face value, Nigeria’s inflation rate contradicts global trend. From the United States to China and across Europe, rising inflation, which was earlier dismissed as transitory, is taking its toll on families and economies. Also reacting, a former President of Trade Union Congress , Peter Esele, questioned the metrics used by the NBS to measure the inflation rate.

MEANWHILE, farmers have blamed insecurity for the persistent rise in food prices. They also warned that the post-harvest crisis could be more threatening. He asked: “Why should we be surprised? Most farmers have abandoned their farms because of insecurity. Only a few people are farming. What we are doing is garden farming because people no longer go to big farms; they rather farm around their homes where they are close to their community.

 

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