Many analysts expected domestic commodity prices to fall back to normal as the lockdown was partially relaxed. In reality, prices have continued to climb because of a combination of factors including the supply disruptions caused by checkpoints, bottlenecks and fear of infection.
There has also been a phenomenon of pricing differential between elitist and sub-urban markets. For example, a bag of garri in Sura is 5%-10% higher than Oyingbo. Increased logistics cost has resulted in steeper prices in markets that are farther from the production source.
This is likely to result in a spike in the headline inflation rate for May (above 12.5%) scheduled to be released next week.
In the slides, the FDC Think Tank discussed these and other burning issues on Channels TV Business Morning programme.
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