Lower inflation masking persistent rise in food prices — Teriba
By Taiwo Scholastica
The Chief Executive Officer of Economic Associates, Dr. Ayo Teriba has warned that Nigeria’s latest decline in headline inflation should not be mistaken for broad economic relief, noting that rising food prices continue to put pressure on households across the country.
Teriba made the observation during a live television interview on Friday while analyzing the June Consumer Price Index released by the National Bureau of Statistics.
The report showed that headline inflation eased marginally to 15.91 percent in June from 15.93 percent in May, marking its first decline in three months.
According to him, the reduction in the headline figure was mainly due to an improvement in core inflation rather than a significant fall in the prices of goods and services consumed daily by Nigerians.
Teriba explained that the decline in headline inflation was primarily driven by a sharp deceleration in core inflation, which fell to 15.92 percent from 16.82 percent in May.
He noted that this shows the Central Bank of Nigeria’s tighter monetary policies and a more stable exchange rate are beginning to yield results.
He, however, pointed out that food inflation moved in the opposite direction, indicating that the cost of basic food items remains high.
He stated that food inflation actually rose to 17.52 percent in June from 16.96 percent in May, adding that prices of staple foods such as yam tubers, garri, beef, and fresh tomatoes are still putting pressure on Nigerian households.
Teriba argued that monetary measures alone cannot solve the country’s inflation challenges, particularly those linked to food production and distribution.
He maintained that monetary policy cannot fix structural issues like rural insecurity, high logistics costs, and transport bottlenecks, which instead require fiscal and structural reforms.
He urged policymakers to complement monetary policies with investments in agriculture, transportation, and rural security, saying such measures would strengthen food supply chains, reduce production costs, and deliver more sustainable relief to consumers.