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Inflation In Nigeria Essay

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The major focus of this paper is inflation. Inflation is considered to be a complex situation for an economy. If inflation goes beyond a moderate rate it can create disastrous situation, therefore inflation should be controlled. Inflation is a situation where there is a general and continous rise in the prices of goods and services. It can be define as the percentage rate of change per year in the price level of goods (Filho.A.S 2000). Inflation is the persistent and appreciable rise in the general level of prices (Jhingan 2002). In inflationary economy it is difficult for the national currency to act as medium of exchange and as a store of value without having an adverse effect on distribution, output and employment (CBN 1984). These is always …show more content…

The inflation slowed for the eight consecutive months to its lowest level since May of 2016, as prices rose at a softer pace for housing, utilities, clothing, footwear, Meantime and food. Inflation hit its highest level in July 2008 and transport prices rose further. Inflation rate in Nigeria averaged 12.45 percent from 1996 until 2017, reaching an all time high of 47.56 percent in January of 1996 and a record low of -2.49 percent in January of 2000 (National Bureau of statistics Nigerian …show more content…

The application of the fiscal policy instrument in modern times is quite different from the historical times. In modern times in the Nigerian economy, the fiscal policy is formulated and implemented simultaneously with the monetry policy and other foreign policies by the government with the aim of having a control approach in tackling economic problems. In the present times in Nigeria the federal government operates a federation account(CBN) and as funds are generated, they are distributed equitably to the state and local government. The table below illustrates the

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