The Minister of Finance, Budget and National Planning, Dr Zainab Ahmed, revealed that food inflation in Nigeria will not fall as fast as other aspects of Nigerian inflation indices. She added that GDP growth for the first quarter of 2021 was boosted by rising oil prices and economic output.
The Minister disclosed this at the end of the FEC meeting while briefing State House correspondents on Wednesday in Abuja.
What the minister said
Dr Zainab Ahmed said:
“In addition, there is another illustration that the slow but gradual recovery process is indicative of the fact that business operations are returning to normal and restrictions on movement and business activities have been relaxed after an extended shutdown in 2020.
Also, the agricultural sector posted strong growth at the rate of 2.28% in the first quarter of 2021, compared to previous quarters. This growth in agriculture is testament to the resilience of the agricultural sector.
Also, the industry sector has recorded positive growth, albeit low, but the growth is positive and this marks the last quarter of growth in the last year in the industry sector.
Services edged down, but a small drop to 0.39%. “
The minister added that there had been a boost in economic activities thanks to the reopening of the economy. She also cited that the price of crude oil increased for the quarter.
“We have seen this positive growth being contributed not only by the petroleum sector, but also by economic activities in the metals sector, cement sector, electricity, telecommunications, food and beverage as well as health. human resources and social services, ”she said. .
What the Minister said about inflation
The minister revealed that for the first time in 19 months, inflation has shown a slight decline. Adding that “it is a very slight decrease, but it is a positive point for us, we had indicated that our projection is that inflation will start to stabilize in April 2021 and this is an indication”, she declared.
“So, for the following periods, we observe that inflation starts to follow a downward trend. Food inflation will not go down as fast as other aspects of inflation.
But it is important to also see that the food inflation rate has also shown a slight decrease and that the increase in the food index, which you will see if you look at the detailed report, is driven by foods such as coffee, tea, cocoa, bread, cereals, soft drinks, milk, cheese, not staple foods like rice, corn and millet, ”she added.
What you should know
Nigeria’s inflation rate stood at 18.12% in April 2021, indicating the first decline in headline inflation in about 20 months, a drop of 0.05% from the 18.17% recorded in March. 2021.
Food inflation fell from 22.95% recorded in March 2021 to 22.72%.