Sanusi: Flooding Increased Food Inflation

19 Nov 2012

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Flood menace

By Obinna Chima with agency report

Nigeria’s food inflation accelerated last month after the recent flooding washed away farms, Governor, Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi, has said.

Bloomberg, which quoted Sanusi to have made this remark at a conference organised in Lagos, however said the regulator did not mention October’s food-inflation rate or how it affected the headline figure. Annual inflation slowed to 11.3 per cent in September from 11.7 per cent the previous month. Food prices, which account for more than half of the consumer price index, rose 10.2 per cent from a year earlier; compared with 9.9 per cent in August.

“We already have an uptick for food inflation for last month; food prices have already come up,” Sanusi said. “For many of those farmers, the floods have simply swept away their income for one year, and that’s going to have an impact on our agricultural productivity,” he added.

Nigeria’s two biggest rivers, Rivers Niger and Benue, overflowed their banks as dams let out water after heavy rains, killing 363 people, displacing 2.2 million and affecting nearly 8 million persons from July to October 31, according to the National Emergency Management Agency.

Meanwhile, following the general increase in food prices last month due to the flood, the FSDH Securities Limited has predicted that year-on-year inflation for October 2012 will record an increase to 12.6 per cent, higher than the 11.30 per cent recorded in September.

The National Bureau of Statistics (NBS) is expected to release the inflation figure for October on Monday, based on the calendar available on the Bureau’s website. Inflation rate stood at 11.3 per cent as at September, a drop from 11.7 per cent recorded in August.
The flood, the report stated, created bottlenecks, which impacted the transportation of agricultural products to markets across the country.

Tags: Nigeria, Featured, Business, Flood menace

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