As food prices resumed an upward trajectory after a brief period of moderation, addressing insecurity in farming communities is considered not only an option for the safety of lives and properties, and boosting agricultural output, but also for easing cost pressures in the cities.

The Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, who gave the advice while reacting to the June inflation report, raised concern that the development has important economic and social implications on the country.

While emphasising that food inflation remains the greatest driver of the cost-of-living crisis, eroding household purchasing power, worsening poverty and food insecurity, and weakening the inclusiveness of the current reform programme, he said sustained moderation in food prices is therefore critical to improving welfare and strengthening public confidence in the reform process.

He said: “Headline inflation eased marginally from 15.93 per cent in May to 15.91 per cent in June, while month-on-month inflation moderated from 1.75 per cent to 1.66 per cent. These changes indicate that headline inflation has largely plateaued.

“The dominant concern in the report is the renewed acceleration in food inflation. Year-on-year food inflation increased from 17.43 per cent to 17.52 per cent, while month-on-month food inflation rose sharply from 2.98 per cent to 3.75 per cent, the strongest monthly increase in several months. This suggests that food prices have resumed an upward trajectory after a brief period of moderation.”

Dr Yusuf said the renewed increase in food inflation reflects persistent supply-side constraints, including insecurity, high transportation and logistics costs, elevated energy prices, rising fertiliser costs, supply-chain disruptions and imported inflation arising from recent geopolitical developments, adding that they are challenges that monetary policy cannot resolve.

He stressed that report also indicates that food, transportation, housing, utilities and energy account for approximately 72 per cent of current inflationary pressures, saying the development provides a clear policy direction – “efforts to moderate inflation should be concentrated on these sectors, where interventions are likely to yield the greatest impact.”

Dr Yusuf said priority interventions by the federal, states and local councils should include restoring security in farming communities, expanding irrigation and all-season agriculture, accelerating mechanisation, promoting technology adoption, improving access to affordable agricultural finance and inputs, reducing post-harvest losses through better storage infrastructure, and lowering transportation and logistics costs across the agricultural value chain.

“Equally important is making agriculture more technology-driven and commercially attractive to encourage greater youth participation.

“Government should also sustain exchange-rate stability and deepen domestic petroleum refining to reduce foreign exchange demand for fuel imports, moderate imported inflation and strengthen macroeconomic resilience.

“The rising urban inflation may partly reflect increasing population displacement from rural communities affected by insecurity. As more households migrate to urban areas, demand for housing, transportation, utilities and other essential services rises, adding to inflationary pressures and related urbanisation challenges. Addressing insecurity in farming communities is therefore important not only for the safety of lives and properties, boosting agricultural output but also for easing cost pressures in the cities,” he said.

Continuing, Dr Yusuf stressed that the June inflation data do not warrant further monetary tightening, noting that the headline inflation has largely stabilised, core inflation continues to moderate and the principal drivers of inflation remain structural rather than demand-induced.

“The June 2026 inflation report points to a broad stabilisation of headline inflation but also reveals a renewed escalation of food prices. While macroeconomic stability is gradually being consolidated, structural inflationary pressures within the real economy remain pronounced.

“Accordingly, the CPPE expects the Monetary Policy Committee to maintain the current monetary policy stance at its next meeting. The immediate policy priority should be for the monetary authorities to collaborate with the fiscal authorities to accelerate structural reforms that expand food supply, improve logistics, reduce energy and production costs, reduce debt service costs, strengthen domestic value chains and enhance productivity. These measures offer the most sustainable path to lower inflation, stronger growth and improved living standards.”