Despite the celebrated moderation in food inflation for two consecutive months, which brought the rate down from an all-time high of 40.87 per cent in June 2024 to 37.52 per cent in August, the prices of major foodstuffs are still very high in the market.

The National Bureau of Statistics in its Selected Food Price Watch for August 2024 shows that the average price of 1kg of beans brown (sold loose) stood at N2,574.63. This indicated a rise of 271.55 per cent in price on a year-on-year basis from N692.95 recorded in August 2023 and a 5.31 per cent rise in price on a month-on-month basis from N2, 444.81 in July 2024.

The report said agric eggs medium size (12 piece) experienced significant price increases year-on-year by N121.92 per cent from N1,031.55 in August of 2023 to N2,289.19 in August 2024. On a month-on-month basis, the average price of this item rose by 5.48 per cent from N2,170.17 in July 2024.

The NBS noted that there was also a notable price increase of bread (sliced) by 113.16 per cent on a year-on-year basis from N684.85 in August 2023 to N1,459.85 in August 2024.

On a month-on-month basis, it increased by 2.28 per cent from N 1,427.25 in July 2024. The average price of 1kg local rice sold loose went up by 148.41 per cent on a year-on-year basis from N737.11 in August 2023 to N1,831.05 in August 2024, while there was an increase of 3.65 per cent on a month-on-month basis. Also, the average price of 1kg of yam tuber increased by 188.31 per cent on a year-on-year basis from N576.39 in August 2023 to N1, 661.80 in July 2024. On a month-on-month basis, it decreased by -7.82 per cent from N1, 802.84 in July 2024.

On the other hand, the report says tomato 1kg declined by 11.07 per cent month-on-month from N1,693.83 in July 2024 to N1,506.35.

Meanwhile, an economist and professor of Capital Markets, Professor Uche Uwaleke of Nasarawa State University, Keffi, has called on the government to focus more on production if it seriously wants to force down inflation.

Prof. Uwaleke in his reaction to the latest hike in the Monetary Policy Rate (MPR), by the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN), also urged the government to cut down on its spending.

The MPC at its 297th meeting held between Monday and Tuesday this week voted to increase the monetary policy rate, which measures the benchmark interest rate, to 27.25 per cent from 26.75 per cent. This will be the fifth time the MPC will be raising the MPR this year in its effort to keep inflation down.

This latest hike has already drawn the ire of many stakeholders including the organised private sector (OPS), which has described the hike as a decision capable of worsening bad loans in various banks.

Many operators in the small business sector said it was unfortunate that the increase was coming when manufacturers and actors in the real sector were still grappling with the high cost of doing business amongst many other challenges.