Nigeria's food inflation eased to 19.57% in August, driven by price stability across most fast-moving consumer goods (FMCG) food products, according to the latest Price and Promo FMCG Momentum report. The report, which monitored 110 food products, found that 79% recorded no month-on-month price change, while 12% became cheaper and 9% saw price increases. Breakfast cereals and powdered milk posted the most noticeable price cuts, with about one in five comparable products in both categories recording reductions.
Price Stability Dominates Packaged Food Market
The report, which examined 110 food products, found that almost eight out of every 10 products recorded no month-on-month price change in August. All six food categories tracked in the assessment remained within the Stable range. Food seasoning recorded no month-on-month price movement across comparable products, while noodles and edible oil also posted relatively high levels of price stability.
The FMCG market overall remained in the "Stable" category, although more products recorded price reductions during the month. The report noted that the trend showed that price stability continued to dominate the packaged food market despite some downward adjustments during the month.
Cereals and Milk Lead Price Reductions
Breakfast cereals and powdered milk recorded the most noticeable shift towards lower prices in August. About one in five comparable products in both categories recorded price reductions during the month, indicating that some manufacturers and retailers were beginning to adjust prices downward.
The report said the wider occurrence of price cuts was broadly in line with the moderation recorded in Nigeria's national food inflation. It added that while stable prices remained the dominant trend across packaged FMCG foods, downward adjustments became more common during the month.
Petrol Prices Still Pressure Households
The separate bi-weekly Consumer Market Pulse report also showed that price pressures on major household commodities weakened during the period. The easing was driven mainly by lower prices for ingredients and grains. Pepper prices fell enough to offset increases in the prices of red and white onions, while lower rice prices helped push the grains category downward.
Energy prices were broadly stable despite a 6% increase in Premium Motor Spirit (PMS), commonly known as petrol. Higher petrol and diesel prices were largely balanced by a decline in kerosene prices, while cooking gas prices remained unchanged. The Consumer Market Pulse consequently moved from "Stable" in July to "Easing", reflecting softer price movements in the ingredients and grains categories.
The latest figures suggest some moderation in household food costs, although consumers continue to face mixed price movements across different commodities. While falling prices for some food items provided relief, higher petrol prices remained a source of upward pressure on household energy costs.
