FDC COMMODITY UPDATE – JUNE 09, 2020

Dear Subscriber,

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.

Do enjoy the read…