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Pepper prices (50kg) hit N100,000 in July, as June’s inflation rate increased to 34.19%

In March, the price of a 50kg bag of pepper, a commodity with no close substitute, surged by 1,566%, rising from N15,000 in March 2023 to N250,000 before settling at N100,000 in July. This sharp increase is mainly due to the removal of fuel subsidies, compounded by insecurity, diseases, pests, and post-harvest losses. Consequently, Nigeria’s annual inflation rose by 0.24% in June to 34.19%, driven by high food and energy prices, with the food inflation sub-index climbing from 40.66% in May to 40.80% in June. The expected petrol shortages and floods in northern areas are likely to further increase July’s inflation rate. The Monetary Policy Committee is expected to maintain its tightening stance at its July 22nd and 23rd meeting.

Brent slipped by 0.86% to $84.12pb due to bearish demand signals

Brent prices fell by 0.86% to $84.12pb on Tuesday due to weaker Chinese economic data. China’s economy grew by 4.7% in Q2’24, down from 5.3% in Q1’24, marking the slowest rate since Q1’23 and below analysts’ expectations of 5.1%. In the near term, Brent prices are likely to remain bearish due to China’s weak oil demand outlook.

FDC’s M.D., Mr. Bismarck Rewane, and senior associate, Halima Adediran, discussed these and other burning economic issues on Channels TV Business Morning and Business Incorporated programmes, respectively.

Click the link to watch the video.

Enjoy your read!