10 Steps Away from Food Hyperinflation
As of March 2024, Nigeria’s food inflation rate has hit 40%, bringing it alarmingly close to the 50% threshold of hyperinflation.
This alarming trend marks a significant milestone in the country’s economic landscape in the last five years, with the rate steadily climbing from 13.51% in January 2019 to its current level.
Hyperinflation refers to an economy’s rapid, excessive, and uncontrolled rise in general prices. It describes an inflation rate that is usually greater than 50% per month (inflation measures the rate at which prices for goods and services are rising).
The National Bureau of Statistics (NBS) data reveals a gradual but steady increase in Nigeria’s food inflation from January 2019 to March 2024.
Starting at 13.51% in January 2019, the rate has more than tripled over five years, reaching the 40% mark in March 2024.
If we follow the pattern of previous 10 percentage point shifts, this 10% point gap away from hyperinflation could be closed in a matter of months, except circumstances change.
It took 7 months, from September 2023 to March 2024, for food inflation to reach this milestone, rising from 30% to 40%.
The prior increase in the inflation rate from 20% to 30% took 14 months, from June 2022 to August 2023.
The impact of this skyrocketing inflation extends nationwide, but certain states bear the brunt more than others.
States like Kogi, Kwara, and Akwa Ibom are experiencing exceptionally high food inflation rates, surpassing the national average.
Similarly, Southern states such as Rivers, Abia, and Ebonyi are grappling with significant inflationary pressures, reflecting challenges in market dynamics, transportation costs, and agricultural production constraints.
Urban centres like Lagos and Abuja are not spared either, with food inflation rates exceeding 40%.
Meanwhile, some northern states like Nassawara, Borno, and Bauchi exhibit lower food inflation rates compared to the national average.