THE EFFECT OF MACROECONOMIC VARIABLES ON INFLATION IN NIGERIA

Abstract

This study was designed to investigate the effect of Macroeconomic variables on Inflation in Nigeria. Secondary data source was employed. Data for the study were drawn from the Central Bank of Nigeria Statistical Bulletin (2022). Ordinary least squares method of multiple regressions was applied. The study has revealed that inflation is significantly affected by some of the selected macroeconomic variables in Nigeria. The study further noted that inflation has serious implications on economic growth in Nigeria. The study also identified various factors that influence inflation rate in Nigeria with their direction of influences. The research has emphasized the need to stimulate the level of consumption and production so as to further ensure price stability and economic growth in Nigeria.  It was also recommended that Government should use both fiscal and monetary policies to control inflation in Nigeria.