Nigeria hit hardest by food inflation – World Bank

The World Bank’s latest Food Security Update underscores the pervasive impact of domestic food price inflation, particularly in Nigeria, Africa, North America, and Latin America. With inflation exceeding five per cent in 61.9% of low-income countries, the report highlights the escalating global challenges faced by various income brackets.

The recent update indicates a two per cent increase in agriculture, six per cent in cereal, and one per cent in export price indices. Notably, maize and wheat prices surged by eight per cent and 14 per cent, respectively. Despite a slowing global economy, the demand for agricultural products is projected to reach unprecedented levels in the 2023/24 marketing season.

In 74% of 167 countries with available data, food price inflation surpasses overall inflation, impacting regions such as Africa, North America, Latin America, South Asia, Europe, and Central Asia. The imposition of food trade restrictions, particularly following Russia’s invasion of Ukraine, has further compounded the global food crisis.

Regional Insights

Within Nigeria, Kogi, Kwara, and Rivers witnessed the highest spikes in food inflation, reaching 41.29%, 40.72%, and 40.22%, respectively. The National Bureau of Statistics’ November 2023 Consumer Price Index indicates an overall food inflation rate of 32.84%, primarily driven by increases in bread and cereals, oil and fat, potatoes, yam and other tubers, fish, fruit, meat, vegetables, and coffee, tea, and cocoa.

Comparing November 2023 to the previous year reveals an alarming 8.72 percentage points increase in the food inflation rate. On a month-on-month basis, November 2023 recorded a 2.42% inflation rate, marking a 0.51% uptick from October 2023.

In summary, the World Bank report emphasizes the severity of domestic food price inflation, particularly in low-income countries like Nigeria. The data underscores that food price inflation often surpasses overall inflation in most countries. The global food crisis is further aggravated by escalating food trade restrictions. Notably, Nigeria faces a significant surge in food prices, primarily attributed to the rising costs of various essential food items.