Inflow generous is a macro topic in coming, which is inevitable of lexicon. It persistent increases in the general price cover of community. Also, it could be described as a situation pursuing few gooses. Furthermore, it could be described as a site. Or where there is a full in the purchasing power on naira currency. Under this topic we will pay more attention to the effects and causes of inflation in Nigeria.

The group information for the project, such as obtaining from the early eighties till now.

At the end of this work, the group will seem it fit have procreated a well and appreciable project.

COVER PAGE

TITLE PAGE

APPROVAL PAGE

ACKNOWLEDGEMENT

DEDICATION

ABSTRACT

TABLE OF CONTENTS

CHAPTER ONE

1.1 SATEMENT OF THE PROBLEM

1.2 RATIONAL OF STUDY

1.3 SINGNIFIANCE OF THE STUDY

1.4 BACKGROUND OF THE STUDY

1.5 DEFINITION OF TERMS

CHAPTER TWO:

2.1 THEORETICAL REVIEW

2.2 EMPERCIAL REVIEW

CHAPTER THREE:

3.1 HYPOTHESIS OF THE STUDY

3.2 RESEARCH TOOLS AND PROCEDURE

3.3 SOURCES OF STUDY

3.4 LIMITATION OF THE STUDY

CHAPTER FOUR:

4.1 DATA PRESENTATION

4.2 ANALYSIS OF DATA

4.3 DISCUSSION OF THE RESULT.

CHAPTER FIVE:

5.1 SUMMARY OF THE STUDY

5.2 CONCLUTIONS

5.3 RECOMMENDATION ON THE STUDY

5.4 RECOMMENDATION FOR FURTHER STUDIES

BIBLIOGRAPHY AND REFERNCES.

CHAPTER ONE

INTRODUCTION

Statement of the problem.

The inflationary period is a time of high price of goods and service. Onah (2005) this works the quantity and type of products (good and services) purchasable by individuals and corporate body at any point in time. The problem passed by this, is that individuals and corporate bodies in the society are unable to purchase the quantity of desired products during inflation.

During inflation, income earners especially those with fixed income and very poor ones in the society find if difficult to match with the increasing prices of goods and services. This continues as long as price rises and there is fall in the purchasing power. Standard of living must

be emphasized.

More values of money is being required by individuals for the purpose of desired products during an inflation period as opposed to normal economic situations. This brings about decline in the purchasing power. This results in a problem as the ability of individuals to purchase “products” in the light of continued rising prices become reduced.

Also of importance is the issues of inflation giving rising to the different society wish income as the distinction factor. There is a large gap between income of foxed income earners and profit earner. This is because the income profit earners rise with the rising prices of products as opposed to those of fixed income earners.

Again worthwhile to note is the fact that during inflatary period, savings decline. This could analyzed the people tend to spent more of their income due to higher prices of products.

This result into a problem because a declaimed in savings gives birth to low investment which detents economic growth

The important questions to ask, there are how will the individuals be able to purchase the desired mix of products? How will the fixed income earners be able to maintain their standard of living at period of continuous rising in prices? How dose a poor man make both and meet under a decline purchasing power? How will the government bridge the gap between the fixed income earners and profit earners?

1.2 RATIONAL OF THE STUDY

The rational of the study is important to people of Nigeria to know the effects of inflation in an economy.

As we have know what inflation is all about and as well the effect it has in an economy, we need to fight it very seriously to prevent it coming to our economy because it may come in, the economy is to suffer much on it. Inflation has a very bad affects even to the fixed salary earners mostly where a staff or civil servant has a fixed amount of money as salary can never meet up all he needs because of the inflation. Since we said or know that inflation period in an economy is when there is two much money in circulation chasing few goods.

Once this suffering exists in our economy, our investors cannot be able to invest again and since they cannot invest, it means that the economy is going backwards and individual’s standard of living is going down.

In an economy where inflation exist, there is always decrease in production and once there is a decrease in production it means that those that engage in production process can not produce what will lead them to invest or save. Once they cannot save their resource means that banking industries is affected.

I suggest that our government have to increase taxation, modernized techn0logy, increase bank rate, use effective of control and so on to control or prevent the existence of inflation in our economy.