The high rate of inflation in Nigeria can be attributed to
Answer Details
The high rate of inflation in Nigeria can be attributed to the increasing cost of production. This means that the cost of producing goods and services in Nigeria has been rising, which leads to an increase in prices of those goods and services.
When the cost of production increases, businesses are forced to increase the prices of their goods and services in order to maintain their profit margins. This, in turn, leads to an increase in the general price level of goods and services in the economy, which is reflected as inflation.
Therefore, as the cost of production continues to increase, inflation in Nigeria will likely continue to rise, unless measures are taken to address the underlying factors driving the rise in production costs.
In summary, the high rate of inflation in Nigeria can be attributed to the increasing cost of production, which leads to an increase in the general price level of goods and services in the economy.