Inflation and changes in output and consumer prices of food in Nigeria

Abstract

The main objective of this study is to identify relationship between inflation, food production and changes in consumer prices of food in Nigeria. This study was carried out in the context of a macro-econometric model, which recognizes the inter-relationship among inflation and agricultural production. The study covered the period from 1970 to 1964 and data were obtained mainly from official sources. The study reveals that the major factors in the Nigerian inflationary process are mainly structural and manifest as cost-push pressures in the economy. The identified factors are lagging food supplies, persistent budget deficits, foreign exchange constraints, and increases in import prices as well as increases in consumer price of food. A combination of some aspects of exchange rate, fiscal, monetary and pricing policies including measures, which would boost food production, were recommended as a policy package for attaining simultaneously, price stability and growth of agricultural output in the country [Niger Agric. J. 33 (2002): 1-9]