rotland/Analysis-General-Inflation-Food-Inflation-in-Nigeria-

In this project I conducted a correlation analysis using Nigeria historical dataset (2015 – 2024) & also create a dumbbell chart to compare food items and price increase between 2023 and 2024. # Analysis: General Inflation & Food Inflation in Nigeria Food inflation and general inflation are related but distinct concepts within the realm of economics. In this project I conducted a correlation analysis using Nigeria historical dataset (2015 – 2024) & also create a dumbbell chart to compare food items and price increase between 2023 and 2024. # Dataset source: Nigeria bureau of statistics (NBS) # Food Inflation Food inflation refers to the increase in prices of food items over time. Several factors contribute to food inflation, including: Supply Chain Disruptions, Agricultural Inputs, Weather Conditions, Global Trade Policies, Demand Changes. # General Inflation General inflation is the overall increase in the price level of goods and services in an economy over a period of time. It is commonly measured by indices such as the Consumer Price Index (CPI) or the Producer Price Index (PPI). Factors influencing general inflation include: Monetary Policy, Demand-Pull Inflation, Cost-Push Inflation, Expectations of Inflation, Exchange Rates. # Analysis Nigeria inflation rate accelerated straight month of 29.9% in January 2024 from 28.92% in the prior month, marking the highest reading since March 1996. Food inflation, which accounts for the bulk of Nigeria's inflation basket, surged to a record high of 35.41% in Jan 2024, compared to Jan2023 reading of 21.82%. food inflation in Nigeria averaged 13.42 percent from 1996 until 2024, reaching all time high 35.41% in January 2024 and a record low of -17.50 percent in January of 2000(NBS). The period with the lowest food inflation rate is from 2013 to 2016. After that, inflation nearly reached 20% in 2017, declined between 2019 and 2022, and then increased from 2023 to over 36% in January 2024. There is a surge in a few food items between 2022 and 2023, according to the USDA charts. Vegetable oil increased from #1,162.00 to #1,710.00, or around 47%. # # Conclusion In recent years, food prices have been on the r …