OPS blames insecurity as food inflation hits 40.8%

- Advertisement -

The organised private sector, on Monday, blamed the worsening insecurity in the country for the food inflation which increased to 40.87 per cent in June 2024 up from 25.25 per cent in June 2023.

Data released by the National Bureau of Statistics on Monday showed that the rise in food inflation in June 2024 represented a 15.62 per cent point increase year-on-year and a 2.55 per cent rise month-on-month.

- Advertisement -

The NBS report showed that the highest increases in food prices were recorded in millet, garri, guinea corn, yam, water yam, coco yam, groundnut oil, palm oil, catfish, and dried fish.

READ ALSO: Hardship: Southeast youths will not protest against Tinubu – Gov Uzodinma

It stated that the hike in the costs of these commodities pushed up the country’s rate of inflation during the review month.

-Advertisement-

This came as the Nigerian Association of Chambers of Commerce, Industry, Mines, the Lagos Chamber of Commerce and Industry, as well as economic experts decried the persistent insecurity across the country.

They also called for massive investments in rural infrastructure, stressing that the Federal Government must tackle the rising food inflation to address hunger in Nigeria.

An economist at Lotus Beta Analytics, Shedrach Israel, attributed the surge in food inflation to various factors, including over-reliance on importation, exchange rate fluctuations, insecurity, and global economic uncertainty.

“The implications are far-reaching, leading to reduced purchasing power, increased cost of living, and economic instability,” Israel said.

“To address this challenge, I recommend that the government and monetary authorities take decisive action to diversify the economy, implement fiscal policies, strengthen the naira, and enhance economic productivity,” he added.