Despite the increase in food inflation in Nigeria, caused by increases in the prices of bread and cereals, oil and fats and many others. The World Food Price Index continued to fall in December, marking its ninth consecutive monthly decline.
This was revealed in the December 2022 Food Price Index report from the Food and Agriculture Organization of the United Nations (FAO) on Friday.
The index, which tracks the prices of 55 agricultural products, averaged 132.4 points in December 2022, 2.6 points (1.9%) less than in November.
continuous decline: The FAO revealed that the declining rate in December was driven by a sharp drop in international prices for vegetable oils along with some declines in grain and meat prices.
- “The FAO Food Price Index (FFPI) averaged 132.4 points in December 2022, 2.6 points (1.9%) less than in November, marking the ninth consecutive monthly drop and standing at 1.3 points (1.0%) below its value a year ago.
- “The decline in the index in December was driven by a sharp decline in international prices for vegetable oils, along with some declines in grain and meat prices, but partially offset by modest increases in sugar and dairy prices. However, for 2022 as a whole, the FFPI averaged 143.7 points, up 18 points or 14.3% more than in 2021.
Cereal Price Index: Grain prices also fell as ongoing harvests in the southern hemisphere boosted supplies and competition among exporters remained strong
- It averaged 147.3 points in December, 2.9 points (1.9%) less than in November, but still 6.8 points (4.8%) above its December 2021 value.
- “Wheat export prices fell in December as ongoing harvests in the southern hemisphere boosted supplies and competition among exporters remained strong. Global corn prices also declined month-on-month, mainly driven by strong competition from Brazil, although concerns about drought in Argentina provided some support.
- “Global corn and wheat prices hit new all-time highs in 2022, averaging, respectively, 24.8 and 15.6 percent higher than their 2021 averages, while rice export prices were on average 2 .9% above their 2021 levels.
- “The increase in the FAO Cereal Price Index in 2022 was due to a number of factors, including major market shocks, increased uncertainties, higher energy and input costs, adverse weather at some key suppliers and strong world demand for food.
Meat Price Index: The meat index also fell during the period, but remained 2.8 points (2.5%) above its level of the previous year.
- “It averaged 113.8 points in December, 1.4 points (1.2%) less than in November, marking the sixth consecutive monthly drop, but it remained 2.8 points (2.5%) above its level of the last year.
- “The decline in the index in December was driven by lower world prices for beef and poultry, partially offset by higher prices for pork and sheep.
- International bovine meat prices fell, pressured by a greater supply of cattle for slaughter in several large producing countries and lackluster global demand for inputs in the medium term. Meanwhile, poultry meat prices eased as export availabilities were more than adequate to meet import demand for spot supplies, despite production setbacks due to intensifying outbreaks. of avian influenza.
The FAO noted that in 2022 as a whole, the FAO Meat Price Index averaged 118.9 points, 11.2 points (10.4%) higher than in 2021, marking the highest annual average recorded since 1990. .
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Nigeria’s food production capacity was also affected by heavy rains which destroyed crops. food inflation, went up to 24.13% in November 2022 from 23.72% registered in the previous month. The increase in food inflation was due to increases in the prices of bread and cereals, oil and fat, potatoes, yams and other tubers, foodstuffs, and fish.
The “All Items Except Agricultural Products” Core inflation indices, which excludes volatile agricultural commodity prices, stood at 18.24% in November 2022 year-on-year.
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