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Rivers State University, Port Harcourt.
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| Title: | Analysis of Food Inflationary Effect on Nigerian Household Income 1995-2021 |
| Author(s): | MORRIS R.E., OKUDUWOR A.A., AGHOLOR D.C. & BINAEBI E. |
| Abstract: | This study investigated food inflationary effect on Nigerian Household Income from 1995-2021. The objectives of the study were to determine the effect of food inflation on household income in Nigeria, determine the effect of money supply on household income in Nigeria and determine the effect of consumer food price index on per capita income in Nigeria. The method employed for analyzing the time series data was the Auto Regressive Distributed Lag (ARDL) model. Unit root test showed that all the variables were stationary at level I (0) and first difference I (1). The Cointegration test shows that the variables cointegrated in the long run. Post estimation test showed that the models were free of serial correlation and heteroscedasticity. The stability tests, (CUSUM) plots showed that the regression estimates were stable overtime. Food inflation has a negative significant relationship with PCI in its current, first and second lagged period. A unit increase in FINF led to ?3.42, ?5.23 and ?3.02 billion decrease in PCI in the current and lagged periods. The study concluded that food inflation reduces household income and recommended that measures and policies to make stable the inflation rate is paramount to strengthening the countries’ currency and to foster better living standards and economic growth. |
| Keywords: | Food Inflation, Money Supply, Consumer Food Price Index, Food Price, Household |
| Journal: | Economic and Social Science Review (ESR) |
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