Causes Of Consumer Price Inflation In Nigeria

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Inflation rate is primarily measured as the percentage change in the consumer price index (CPI). The CPI measures the price of the representative food and services components such as food, alcoholic beverages, energy, housing, clothing, transport, health, communication, transport, etc (Omotola, 2013). In Nigeria, the consumer price inflation captures the movement in the prices of essential commodities and service that reflect the welfare of the citizens. The argument on consumer price inflation tends to be polarized between the Neoliberal/Monetarists and the Structuralist schools. While the neoliberal/monetarist proponents see the quantum of money supplied as the primary drivers of inflation, the Structuralists point to problems located in institutions, public utilities and infrastructure, security, corruption, goods hoarding and hedging, etc, as causes of inflation. Beside the neoliberal/monetarist and structuralists argument, factors causing inflationary pressures in Nigeria can be located in the forces of demand and supply. Despite effort to grow the agricultural and the solid mineral sectors, Nigeria still depend primarily on crude oil for revenue. In this context, oil prices and it vagaries, detect goernment expenditure (Ikoh & Ukpong, 2010). Whenever the takings from oil are high,government expenditure is heightened. In recent years the Federal Government fiscal expenditure has increased steadily from just a little over N1 trillion in 2001 (57% recurrent) to over N4

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