People lament as Ramadan pushes up food prices

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The surge in the prices of some major foods items, including fruits, due to the Ramadan fasting and the effects of violence in some northern areas of the country has become a source of worry for Nigerians.

Investigations by our correspondent revealed that the prices of some staple foods had recorded over100 per cent increase in recent times.

For instance, the price of a bunch of banana, had increased from N800 before the commencement of the Ramadan fasting to N1,500 in most markets in Lagos, representing an increase of 87.5 per cent, while 12 pieces of orange, which sold for N700 a month ago, is now selling for N1,200, representing 71 per cent.

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President Jonathan May Increase Petrol Prices, Again

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President Goodluck Jonathan says he will definitely raise gas prices again, but will “discuss” with the public the easiest way to do it.  

 In New Year’s Day 2012, Jonathan greeted Nigerians with the shock of new oil prices as he attempted to scrap so-called oil subsidies, leading to widespread strikes and protests that almost toppled his government.  

He solved the problem at that time by partially revoking the effort.  He raised the price to 97 Naira a liter, up from 65 Naira.  

Speaking at a press conference in Lagos today, Mr. Jonathan said, “We cannot continue to waste resources meant for a greater number of Nigerians to subsidize the affluent middle class, who are the main beneficiaries.”

Energy fuels euro inflation

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Euro zone inflation accelerated in September as energy costs soared but core prices stayed low, likely leaving the European Central Bank on track to cut interest rates soon, Reuters reported.

Consumer prices in the 17 countries sharing the euro rose 2.7 per cent year-on-year, the European Union’s statistics office Eurostat said on Friday in a first estimate that marked a rise from 2.6 per cent in August.

Markets had expected inflation to ease to 2.5 per cent.

Energy prices jumped 9.2 per cent after a 8.9 per cent rise the previous month.

Core inflation, excluding both energy and unprocessed foods, fell to its lowest level in a year of 1.7 per cent in August, the latest month for which the data has been published.

Together with recent data indicating that the euro zone economy entered a recession in the third quarter, Friday’s inflation reading kept intact expectations that the ECB will not wait long before delivering a growth-boosting rate cut.

“It seems highly likely that the ECB will take interest rates down from 0.75 per cent to 0.50 per cent in the fourth quarter,” said Howard Archer, economist at IHS Global Insight.

“While the ECB could act as soon as its October meeting next Thursday, we lean towards the view that they will probably hold off to November.”

Just 14 of 73 economists polled by Reuters this week expect the ECB to cut rates when it meets next Thursday but a majority expect the bank to have lopped off 25 basis points by the end of the year.

The ECB kept its main interest rate unchanged at a record low of 0.75 per cent at its meeting earlier this month, taking another policy-easing route by agreeing to launch a new and potentially unlimited bond-buying programme.

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Source : punchng[dot]com