Jubilation as price of rice, sugar, others finally falls in markets

Financial Derivatives Company Limited researchers have stated that several domestic commodity prices are falling because of the naira's recovery in relation to the dollar and other major currencies.

The costs of some food goods have started to rise in tandem with the steady naira appreciation.

Managing Director of Financial Derivatives Company Limited, Bismarck Rewane, revealed in a report sent to investors that the naira had recovered to N1,260/$ and N1,125/$ at both the official and parallel markets.

Rewane said: “Notably, prices of some commodities like rice (50kg) decreased by 5.26 per cent to N90,000, sugar fell by 5.88 per cent to N80,000/bag, flour experienced a decline of 7.81 per cent to N59,000/bag, and noodles (carton) witnessed a significant decrease of 15.22 per cent to N7,800/carton.”

He added that pricing may reflect the appreciation of the naira as more companies start to stock up on inventories.

He concluded: “In the short term, we anticipate further moderation in commodity prices as the naira sustains recovery due to improved forex supply.

"Consequently, inflationary pressure is expected to slow in the coming months.”