Drivers and Management Strategies for Food Price Inflation in Abia State, Nigeria

The study focused on the drivers of food price increases and their management choices: insights from food dealers and consumers in Abia State, Nigeria. Specifically, it estimated the determinants of food price increases from the perspectives of food dealers and consumers, as well as the management responses to food price increases. Primary data were collected from 240 food dealers and 240 food consumers in the study area using a well-structured and validated questionnaire. Descriptive statistics such as mean scores and inferential statistics such as binary logit regression models were employed for data analysis. The findings revealed that household size, monthly income, perceptions of changes in supply and demand dynamics of food items, changes in international market prices for food commodities, perceptions of exchange rates, transportation and distribution costs for food commodities, government policies and subsidies, market structure and competition, climate and environmental factors, food clearance charges and levy, availability of food items, insurgency and herdsmen attacks on farms, and distance to the food item source market significantly determined food price increases in Abia State from the viewpoint of food dealers. Similarly, household size, monthly income, cost of food production, changes in international market prices for food commodities, perceptions of the exchange rate, government policies and subsidies, climate and environmental factors, consumer preferences and dietary changes, availability of food items, and insurgencies and herdsmen attacks on farms significantly determined food price increases in Abia State from the viewpoint of food consumers. The study further shows that educating consumers about nutrition, budgeting, and healthy eating habits and implementing price stabilization mechanisms were some of the identified management choices for food price increases in Abia State. The study recommends that any policy aimed at controlling food price increases in the state should focus on those factors that significantly determine food price increases, as identified in the food dealer and consumer models. Implementing state regulations on food prices and establishing a committee for oversight are necessary to maintain the stability and affordability of food prices for consumers in Abia State.