13 Ways to Fight Inflation & Food Crisis: A Practical Guide

Are rising prices and food shortages leaving you worried? If yes, then you're not alone. Inflation is still on the rise, and food security is a growing concern, not just in Nigeria but worldwide, made worse by wars and climate change. But there are steps you can take to protect yourself and your family. The uncertain economic landscape, the looming spectres of inflation and food crises cast a shadow over the financial security and well-being of individuals and families. Protecting your finances against inflation and food crises has never been more crucial. As food prices rise and access to essential resources becomes increasingly volatile, many are left wondering how to safeguard their finances and pantries against these dual threats. In this article, we delve into the quest for stability amidst turmoil, empowering you to navigate through turbulent times with confidence. Whether you’re a seasoned investor or just starting to build your financial defences, or you just want to be able to still afford the basic needs of your family, this insightful practical guide will show you 5 ways to fight inflation and food crisis to keep you steps ahead of the game. Explore the best strategies to hedge against inflation and food crises. Join us as we navigate the complexities of economic uncertainty and uncover actionable insights to protect yourself and your loved ones in the face of adversity.

What is Inflation?

Inflation refers to a continuous rise in the prices of goods and services in an economy over time, leading to a decrease in purchasing power of money. This means that, over time, the same amount of money will buy you less stuff.  Here's an analogy: Imagine you have a basket of groceries that costs N100 today. With inflation, next year, that same basket of groceries might cost N1,000 because the prices of individual items have increased significantly. It is typically measured using the Consumer Price Index (CPI) or the Producer Price Index (PPI).  Inflation can be caused by various factors, including increased demand, supply shortages, and government policies like excessive money printing.  Central banks must manage inflation to maintain economic stability and prevent it from eroding the value of money too quickly.  The Nigerian central bank needs to manage inflation in Nigeria, exacerbated by the country's poor and hasty government policies.

The Effects of Inflation

Reduced Savings: If inflation exceeds your interest rate, your savings will lose value over time.

Wage Adjustments: Ideally, wages should increase with inflation to maintain purchasing power, which in turn leads to increased money circulation that further worsens inflation. A wage increase in inflation is a virtuous circle.

Uncertainties: High inflation can be unpredictable and make it difficult to plan for future expenses.

Levels of Inflation

Low Inflation (around 2–3%): This is generally considered a healthy level for economic growth.

Moderate Inflation: Anything above 3% but below 10% can start to cause problems for consumers.

High Inflation (above 10%): This can be very damaging to an economy, leading to uncertainty and hardship.

Inflation reports inform policymakers, investors, businesses, and the general public about the rate of inflation, its causes, and its potential impact on economic conditions. They often contain commentary and analysis from economists and experts, along with forecasts or projections for future inflation trends.  Central banks, such as the Federal Reserve in the United States, the European Central Bank and the Central Bank of Nigeria, regularly release inflation reports to communicate their monetary policy decisions and objectives. These reports play a crucial role in shaping expectations about future economic conditions and guiding financial market participants in their decision-making processes.

Historical Trends of Nigeria's Inflation Rate

Nigeria’s inflation rate has fluctuated significantly over the past 62 years, ranging from -3.7% in 1967 to 72.8% in 1995.

Nigeria’s inflation rate has been above the average of emerging market and developing economies (8.9% in January 2024) and advanced economies (4.7% in January 2024) for most of the period.

Several factors have influenced Nigeria's inflation rate, including oil price shocks, exchange rate movements, fiscal and monetary policies, supply shocks, and structural bottlenecks.

Nigeria’s inflation rate has accelerated sharply since 2019, reaching a near 28-year high of 29.9% in January 2024, driven by food and energy prices, amid the impact of the COVID-19 pandemic and the Russia-Ukraine war.

The 13 Ways to Fight Inflation and Food Costs

Looking for measures and ways to hedge Against Inflation and the food crisis?

Here are some measures to hedge against high inflation:

1. Prioritizing Local and Seasonal Produce:

Nigeria’s food crisis is mainly caused by its dependence on imported food. And with the devaluation of the country’s currency [Naira], the food inflation has been made worse since the inception of the current government. For countries like Nigeria, sticking with locally produced food can help the poor in hedging the high food costs. Supporting local farmers and purchasing seasonal produce will help reduce the environmental impact of food transportation while also ensuring fresher and more nutritious options. It is no longer news that locally produced foods are fresher, healthier and more nutritious in most cases. By buying from local markets or joining community-supported agriculture (CSA) programs, individuals can contribute to the resilience of regional food systems and reduce their carbon footprint.  However you look at it, you will see that the benefits of going local with our food are beyond just having enough and cheaper food.

2. Buy your Foodstuff  in Bulk:

Bulk buying is an excellent strategy for combating inflation and food crises, especially for those on a tight budget. Focus on foods that have a long shelf life and require minimal preparation, such as rice, beans, canned foods, oils, etc.  Here's how bulk buying can be beneficial:

• Cost savings: Purchasing items in bulk often results in lower unit prices compared to buying smaller quantities. By buying larger quantities of staple foods like rice, beans, pasta, and grains, individuals can take advantage of wholesale prices and stretch their food budget further.
• Reduced frequency of shopping trips: Buying in bulk means fewer trips to the grocery store, which can save both time and money. By reducing transportation costs and minimizing impulse purchases, individuals can allocate more resources towards essential items and better navigate through periods of inflation.
• Stockpiling non-perishable items: Non-perishable items such as canned goods, dried beans, and shelf-stable grains can be safely stored for extended periods, making them ideal for bulk buying. By stockpiling these items during times of stability, individuals can build up a reserve of food to rely on during times of inflation or food scarcity.
• Emergency preparedness: Bulk buying can also serve as a form of emergency preparedness, ensuring that individuals have a sufficient supply of food in case of unexpected events such as natural disasters, job loss, or economic downturns. Having a well-stocked pantry can provide peace of mind and help individuals weather financial challenges more effectively.
• Reducing waste: Buying in bulk can help reduce packaging waste associated with individual-sized products, contributing to environmental sustainability. By purchasing items in larger quantities, individuals can minimize the amount of packaging material generated and reduce their overall environmental footprint.
• Sharing with others: Buying in bulk allows individuals to share resources with family, friends, or neighbours, fostering a sense of community and solidarity. By pooling resources and purchasing items together, individuals can access larger quantities of food at even lower prices, making it easier to support one another during times of need.

However, it's essential to be mindful of storage space and expiration dates when buying in bulk. Also, consider the opportunity cost of your money.  This is what I mean by that; consider what you would have done with the money you are using to stockpile your house with food with the possible inflation over the period. Ask yourself first if there are investments that can beat inflation or if putting the money in your business can yield a return higher than the inflation rate within the period the food would have lasted. It's also crucial to focus on purchasing items that are genuinely needed and will be used before they expire to avoid waste. Additionally, not all items are cost-effective to buy in bulk, so it's essential to compare prices and consider factors such as shelf life and consumption patterns before making bulk purchases.

3. Grow your Own Food and Raise Livestock:

The concept of growing your own food and raising livestock revolves around individuals or communities taking control of their food production process by cultivating crops and/or raising animals for consumption. This practice can range from small-scale backyard gardening to larger-scale agricultural operations, depending on available space, resources, and personal preferences.

Growing your own food: This involves planting and nurturing edible plants such as fruits, vegetables, herbs, and grains. Whether it's in a backyard garden, on a balcony, or in community plots, growing your own food allows you to have a direct hand in the production process, from seed to harvest. This approach can provide a sustainable and reliable source of fresh, nutritious produce, while also promoting environmental stewardship through practices like organic gardening, water conservation, and biodiversity preservation.

Raising livestock: Raising livestock involves keeping animals such as chickens, rabbits, goats, and snails for meat, eggs, milk, or other products. You can also rare catfish with plastic containers around your house. This can be done on a small scale, such as keeping a few backyard chickens for eggs, or on a larger scale with dedicated pastures or barns for multiple animals. Raising livestock allows individuals to produce their own protein-rich food sources, as well as potentially valuable by-products like manure for fertilizer. The wastewater from your fish can also be used to water your garden to enable you to produce all year round. It also provides opportunities to connect with animals, learn about animal husbandry, and develop skills in animal care and management.

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Other Benefits:

• Self-sufficiency and food security: By growing your own food and raising livestock, you become less reliant on grocery stores and external food sources, which can be vulnerable to disruptions such as supply chain issues, natural disasters, or economic instability. This promotes greater self-sufficiency and resilience, as you have a dependable food supply that is less susceptible to external factors. Additionally, it can lead to cost savings over time, as you reduce your dependence on store-bought food and potentially lower your grocery expenses.
• Community and sustainability: Growing your own food and raising livestock can also foster community connections and promote sustainability. Participating in community gardens, farmers' markets or agricultural cooperatives allows individuals to share resources, knowledge, and experiences with others who share similar interests in food production and self-reliance. Additionally, practising sustainable farming and gardening methods, such as composting, crop rotation, and integrated pest management, contributes to environmental conservation and the long-term health of ecosystems.
• Cost savings: Producing your own food can lead to significant cost savings over time. While there may be initial investments in seeds, equipment, or infrastructure, the long-term savings on grocery bills can be substantial, especially if you focus on growing high-yield, nutritious crops and raising efficient livestock breeds.
• Quality and freshness: Home-grown fruits, vegetables, and animal products are often fresher, more flavourful, and higher in nutritional value compared to store-bought equivalents. By controlling the growing conditions and avoiding chemical additives, you can ensure that your food is packed with essential vitamins, minerals, and antioxidants.
• Self-reliance: Growing your own food and raising livestock fosters self-reliance and independence, giving you that sense of accomplishment. By developing gardening skills, animal husbandry knowledge, and food preservation techniques, you become less dependent on external food sources and gain greater control over your food supply.
• Connection to nature: Gardening and animal husbandry provide opportunities to connect with nature, reduce stress, and promote overall well-being. Spending time outdoors, tending to plants, and caring for animals can be therapeutic and fulfilling activities that enhance mental and emotional health.
• Educational opportunities: Growing your own food and raising livestock offer valuable educational opportunities for individuals of all ages. From learning about plant biology and soil health to understanding animal behaviour and nutrition, these activities provide hands-on learning experiences that promote environmental awareness and sustainable living.

Overall, the concept of growing your own food and raising livestock embodies principles of self-sufficiency, sustainability, and community resilience. By taking an active role in food production, individuals can reap numerous benefits, including improved food security, cost savings, environmental stewardship, and a deeper connection to the natural world.

4. Learn Food Preservation:

Embracing sustainable practices, adopting sustainable food practices such as reducing food waste, composting organic waste, and choosing products with eco-friendly packaging can significantly reduce the environmental footprint of our food consumption. Wastage can be avoided through the preservation of foodstuffs. Even Jesus hates wasting food; “When they were filled, he said unto his disciples, Gather up the fragments that remain, that nothing be lost”. John 6:12. That was after miraculously feeding 5000 men excluding women and children with five barley loaves and two small fishes.  Food preservation refers to the process of extending the shelf life of food by slowing down or inhibiting the growth of microorganisms, enzymes, and other spoilage agents. This practice has been employed for centuries as a means of ensuring food security, reducing waste, and maintaining a steady food supply throughout the year, especially during times of abundance or scarcity.

There are various methods of food preservation, each suited to different types of food and storage conditions. Some common methods include:

• Canning: Canning involves sealing food in airtight containers and heat processing them to destroy harmful microorganisms and enzymes. This method is commonly used for preserving fruits, vegetables, meats, and soups. It can be done using either water bath canning (for acidic foods) or pressure canning (for low-acid foods).
• Freezing: Freezing is one of the simplest and most versatile methods of food preservation. By lowering the temperature, freezing slows down microbial growth and enzymatic activity, effectively preserving the quality of foods such as fruits, vegetables, meats, and prepared meals. Proper packaging is essential to prevent freezer burn and maintain quality during storage.
• Drying/Dehydrating: Drying or dehydrating involves removing moisture from food, which inhibits the growth of bacteria, moulds, and yeasts. This method can be achieved through air drying, sun drying, or using specialized dehydrators. Dried foods, such as fruits, vegetables, herbs, and jerky, are lightweight, shelf-stable, and retain much of their nutritional value.
• Pickling: Pickling involves immersing food in a solution of vinegar, salt, and spices, which creates an acidic environment that inhibits the growth of spoilage microorganisms. Commonly pickled foods include cucumbers (to make pickles), peppers, onions, and various fruits and vegetables. Fermented pickles, such as sauerkraut and kimchi, rely on naturally occurring beneficial bacteria to preserve the food.
• Fermentation: Fermentation is a natural preservation process that involves the conversion of sugars into acids, gases, or alcohol by beneficial microorganisms such as bacteria, yeasts, or moulds. Fermented foods, such as yoghurt, cheese, sourdough bread, kombucha, and miso, have extended shelf lives and often develop unique flavours and textures during the fermentation process.
• Smoking: Smoking is a traditional method of food preservation that involves exposing food to smoke from burning wood or other combustible materials. The smoke contains antimicrobial compounds that help preserve the food and impart a distinctive smoky flavour. Commonly smoked foods include meats, fish, cheeses, and vegetables.
• Root Cellaring: Root cellaring involves storing fruits and vegetables in a cool, dark, and humid environment, such as a root cellar or basement. This method utilizes natural conditions to slow down the ripening process and extend the storage life of produce such as potatoes, carrots, apples, and onions.

Proverbs 12:27 says "The slothful man roasteth not that which he took in hunting: but the substance of a diligent man is precious".  Overall, food preservation techniques play a vital role in ensuring food security, reducing food waste, and maintaining a diverse and nutritious diet year-round. By mastering these methods, individuals can enjoy the benefits of fresh, flavourful foods long after the harvest season has passed.

 5. Advocating for policy change:

Engaging in advocacy efforts aimed at influencing policymakers to implement regulations and policies that support sustainable agriculture, fair food pricing, and access to nutritious food for all is crucial. This can involve supporting initiatives such as subsidies for small-scale farmers, regulations to curb food waste, and measures to address the root causes of inflation, such as monetary policy and income inequality.

By focusing on these strategies, individuals can play a vital role in combating inflation and food crises while promoting a more sustainable and equitable food system.

6. Budgeting and Meal Planning:

Creating a budget and meal plan can help individuals allocate their resources more efficiently and avoid overspending on food. By planning meals around affordable, nutritious ingredients and buying in bulk when possible, individuals can stretch their food budget further and minimize the impact of rising prices.

7. Seeking Out Community Resources:

Many communities offer resources such as food banks, soup kitchens, and community gardens that provide free or low-cost food assistance to those in need. Individuals experiencing food insecurity can access these resources to supplement their food supply and alleviate financial strain during times of inflation.

8. Cooking at Home:

Cooking meals at home from scratch using basic ingredients is often more affordable than buying pre-packaged or processed foods. Learning simple cooking techniques and recipes can empower individuals to create nutritious meals at a fraction of the cost, thereby stretching their food budget further and reducing the impact of inflation.

9. Stay Informed:

Keep up with current events and potential risks in your area that could affect food availability.  You can stay informed and connected by following The Solutions Hub platforms.

Remember, the key is to start preparing before a crisis hits, so you’re not caught off guard. It’s also important to rotate your stock to keep it fresh and to only store what you and your family will eat to avoid waste.

10. Increase Your Assets:

Building assets provides individuals with a financial cushion against inflation and economic uncertainties. For the poor, this could involve saving money regularly, acquiring valuable skills through education or training, or investing in income-generating assets such as small businesses, real estate, or stocks. By increasing assets, individuals can improve their financial resilience and ability to withstand the impact of rising prices on essential goods and services.

11. Invest in Inflation-Proof Securities:

Inflation-proof securities are investments that offer returns that keep pace with or outpace inflation rates. Examples include Treasury Inflation-Protected Securities (TIPS), inflation-indexed bonds, and certain commodities like gold and real estate. By allocating a portion of their investment portfolio to these assets, individuals can preserve the purchasing power of their savings and offset the erosive effects of inflation on their wealth.

12. Diversify your Investments:

Diversification involves spreading investments across different asset classes, sectors, and geographic regions to reduce risk and enhance returns. For the poor, diversifying investments can help mitigate the impact of inflation and food crises by minimizing reliance on any single investment or source of income. This could involve investing in a mix of stocks, bonds, mutual funds, and other financial instruments, as well as exploring alternative investments such as peer-to-peer lending or microfinance initiatives.

13. Adjust your Money Habits:

Adopting prudent money management habits can also help you navigate inflation and food crises more effectively. This may include budgeting effectively to prioritize essential expenses, reducing discretionary spending on non-essential items, seeking out discounts or sales when purchasing goods, and avoiding high-interest debt that can exacerbate financial strain. Additionally, cultivating a mindset of frugality, resourcefulness, and long-term planning can empower individuals to make informed financial decisions and weather economic challenges more resiliently. In that regard, we are recommending this book: Mistakes of Esau: 10 Harmful Habits That Ruin People's Destiny. It is a powerful book that can change your life by helping you change the harmful habits that deplete your resources. 

By implementing these strategies, individuals, particularly those from low-income backgrounds, can enhance their financial well-being, protect against the negative effects of inflation, and improve their ability to access affordable and nutritious food during times of crisis. These strategies may have different risks and returns depending on your financial goals and risk tolerance. Therefore, you should consult a financial advisor before making any investment decisions.

Conclusion

In conclusion, combating inflation and navigating through a food crisis demands proactive and strategic measures. By implementing the ten practical strategies outlined in this guide, individuals and communities can mitigate the impacts of rising prices and ensure food security. From prioritizing local and seasonal produce to embracing sustainable practices and advocating for policy change, every action counts in safeguarding against the challenges of inflation and food scarcity. By fostering resilience, resourcefulness, and community collaboration, we can pave the way towards a more sustainable and equitable future, where access to affordable and nutritious food is a fundamental right for all.

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