Impact of Inflationary Pressure on the Final Consumption Expenditure of Household in Nigeria

Adeneye Olawale Adeleke , Abeeb Olawale Rasak

Consumer Price Index (CPI), Operating Surplus (OPS), Final Consumption Expenditure of Household (FCEH) and Changes in Inventories (CIV)

This study examines the Impact of Inflationary Pressure on Final Consumption Expenditure of household in Nigeria, (1999 – 2023), using annual time series data obtained from s World Bank Group Development Indicator (2023) and Central Bank of Nigeria Statistical Bulletin (2023). The econometric techniques of Autoregressive Distributed Lag Regression Analysis and Correlations Analysis were used to analyze the study data. The results of this study revealed that inflationary pressure proxy by consumer price index (CPI) have negative and statistically significant impact on final consumption expenditure of household (FCEH). That is, one percent increase in CPI a measure of inflation will result to about at 798percent decline in FCEH. Moreso, changes in inventories (CIV) and operating surplus (OPS) respectively have positive and statistically significant impact on final consumption expenditure of household (FCEH). That is, one percent increase in CVI and OPS will lead to about at 209percent and 55percent increase in FCEH respectively. This study also showed that inflationary pressure has short run and long run cointegration relationship with final consumption expenditure of household in Nigeria. Based on these findings, the study recommends that appropriate fiscal and monetary policy targeting on curbing inflationary pressure affecting final consumption expenditure of household should be formulate and implements. Such as stabilizing price level of goods and services and reducing cost of production. More so, policy mix that will positively improve changes in inventories (CIV) and operating surplus (OPS) should be implements.

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"Impact of Inflationary Pressure on the Final Consumption Expenditure of Household in Nigeria", IJNRD - INTERNATIONAL JOURNAL OF NOVEL RESEARCH AND DEVELOPMENT (www.IJNRD.org), ISSN:2456-4184, Vol.9, Issue 10, page no.a452-a465, October-2024, Available :https://ijnrd.org/papers/IJNRD2410048.pdf

Volume 9 Issue 10, October-2024

Pages : a452-a465

Paper Reg. ID: IJNRD_300782

Published Paper Id: IJNRD2410048

Downloads: 00048

Research Area: Science and Technology

Country: -, -, India

Published Paper PDF: https://ijnrd.org/papers/IJNRD2410048

Published Paper URL: https://ijnrd.org/viewpaperforall?paper=IJNRD2410048

ISSN: 2456-4184 | IMPACT FACTOR: 8.76 Calculated By Google Scholar | ESTD YEAR: 2016

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