Inflation Volatility and Economic Development: Evidence from Nigeria
We use monthly time-series data on the prices of 96 individual products in the 37 states of Nigeria to analyze the factors that drive inflation volatility. Among the significant determinants of volatility are average inflation rates, transport and communication infrastructure, consumer access to credit markets and urbanization. However, there is substantial heterogeneity across products in the relative importance of these factors.
Publisher: Department of Economics, University of Otago
Series number: 807
Keywords: Inflation; Volatility; Uncertainty; Nigeria
Research Type: Discussion Paper