An Analysis of the Effect of Inflation on GDP and Consumer Price Indices in Nigeria
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style:
- Recommended for :
- NGN 5000
Background of the Study
Inflation has a direct impact on the overall economic performance and the cost of living in any country. In Nigeria, inflation influences both GDP and consumer price indices (CPIs), which are critical measures of economic well-being. High inflation can erode purchasing power and distort economic growth figures, while moderate inflation is often associated with a growing economy (Adeyemi, 2023). The relationship between inflation, GDP, and CPIs is complex; rising inflation may signal overheating in some sectors, whereas controlled inflation may be indicative of steady economic expansion (Okoro, 2024). Recent empirical research has highlighted that understanding these dynamics is essential for formulating effective monetary and fiscal policies that ensure economic stability (Balogun, 2025). This study aims to analyze the effect of inflation on GDP and CPIs by examining historical data, policy interventions, and market responses, thereby providing insights into how inflationary trends shape the economic landscape in Nigeria.
Statement of the Problem
Nigeria continues to grapple with high inflation rates that adversely affect GDP growth and consumer purchasing power. The persistent rise in inflation has led to distorted CPIs and undermined real economic progress (Adeyemi, 2023). Policymakers face challenges in balancing inflation control with stimulating economic growth, as the effects of inflation on GDP and CPIs are not fully understood (Okoro, 2024; Balogun, 2025).
Objectives of the Study
- To examine the impact of inflation on GDP growth.
- To analyze the effect of inflation on consumer price indices.
- To recommend policy measures for mitigating inflation’s adverse impacts on the economy.
Research Questions
- How does inflation affect GDP growth in Nigeria?
- What is the relationship between inflation and consumer price indices?
- Which policy interventions can stabilize inflation and support economic growth?
Research Hypotheses
- High inflation negatively affects GDP growth.
- Rising inflation leads to increased consumer price indices.
- Effective inflation control policies result in improved economic performance.
Significance of the Study
This study is significant as it examines the critical impact of inflation on GDP and consumer price indices in Nigeria. The findings will provide valuable insights for policymakers seeking to balance inflation control with economic growth, ultimately promoting a more stable economic environment (Adeyemi, 2023; Okoro, 2024; Balogun, 2025).
Scope and Limitations of the Study
This study is limited to analyzing the effect of inflation on GDP and CPIs in Nigeria. It focuses exclusively on inflation-related variables without incorporating other external economic influences.
Definitions of Terms
• Inflation: A sustained increase in the general price level of goods and services.
• GDP: The total market value of all goods and services produced in a country.
• Consumer Price Indices (CPIs): Measures that examine the weighted average of prices of a basket of consumer goods and services.
Related Project Materials
ASSESSMENT OF WATER BORNE DISEASES OUTBREAK AND THEIR PREVENTION MEASURES A CASE STUDY OF CHOLERA AMONG INFANT OF 0-5 YEARS ATTENDING GENERAL HOSPITAL NINGI LOCAL GOVERNMENT AREA OF BAUCHI STATE
Background of the study
Water is essential to human life, agriculture and animal husbandry, and modern...
IMPROVING COLLABORATION BETWEEN TECHNICAL COLLEGES AND INDUSTRIES FOR SKILL ACQUISITION IN ELECTRICAL INSTALLATION AND MAINTENANCE
ABSTRACT
The study was carried out to determined ways that could be used for improving collaboration be...
THE IMPACT OF RITUALISM ON NATIONAL SECURITY
ABSTRACT
The broad objective of this study borders on the impact of ritualism on national security...
An appraisal of customer trust-building measures in Islamic banking
Background of the Study
Customer trust is a cornerstone of any successful financial institution, and in Islamic banking, t...
An Appraisal of Mass Media Campaigns in Promoting COVID-19 Vaccine Acceptance in Gombe State
Background of the Study
The COVID-19 pandemic underscored the importance of vaccination in curbing dise...
An Evaluation of the Impact of External Donations on University Operations: A Case Study of Ahmadu Bello University, Zaria
Background of the Study
External donations have increasingly become a crucial source of funding f...
PERCEPTION OF TEACHERS AND STUDENTS TOWARDS SEX EDUCATION IN SECONDARY SCHOOLS
BACKGROUND OF THE STUDY
The importance of sexuality education in schools has grown in today's mode...
PRINCIPALS AND SUPERVISION OF INSTRUCTION AND ACADEMIC PERFORMANCE OF JSS 3 STUDENTS IN EDUCATION
ABSTRACT
This study was carried out to examine principals and supervision of instruction and acade...
An evaluation of geopolitical trends influencing sustainable agriculture in Kiyawa Local Government Area, Jigawa State
Chapter One: Introduction
THE EXAMINATION OF THE IMPACT OF MANAGEMENT ACCOUNTING FOR NON-PROFIT ORGANIZATIONS
ABSTRACT:
This research examines the role of management accounting in non-profit organizations (NPOs) i...
