Analysis of Food Price Indices and Inflation Rate in Nigeria

Abstract

This study investigates the relationship between food price indices and inflation in Nigeria, highlighting the significant impact of food price volatility on inflation and economic stability. Annual data from 2008 to 2024 sourced from the Food and Agriculture Organization (FAO) and the Central Bank of Nigeria was used for the analysis. Descriptive analytical tools, multiple linear regression, and time series models were used for the findings. Results showed that the trend of food was upward from 2021, there was significant reduction in the consumption of meat and dairy as revealed by negative skewness of their price indices and the significant difference from the regression outcomes. The findings highlight the importance of addressing price fluctuations to enhance economic resilience and mitigate rising inflation, particularly in a predominantly agrarian economy like Nigeria.