Abstract
Inflation is simply rise in prices of commodities and devalues of money. It directly influences the standard of living. The effect of inflation has made it very difficult for many households have to get their basic necessities which have gone beyond their purchasing power. This study is about the impact of inflation to the cost of living and its main objectives are to find out the riskiness of inflation to the purchasing powered of society and to determine the main factors those contribute the inflation.
The purpose of this paper is to give the impact of inflation on cost of living. This paper examines the dynamic interactions between inflation and cost of living in Nigeria , to see how the inflation affects standard of living, Somaliland people has been weakened by uncontrollable inflation and they need a long term solution which at least reduce the inflation or the rising prices of the commodities.
The researcher summarized the findings of the study and confirmed that inflation hurts the cost of living and real purchasing power of society
BACKGROUND TO THE STUDY
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