No economy can escape the evils done is by inflation and unemployment because when measures to control one are being employed the other is being upset. However, we are dealing with inflation alone. In fact, this study investigates the impact of salary increase on inflation in Nigeria. In a bid to achieve the objective of the study, ordinary least square regression method was adopted using secondary data from 1984 to 2009 the results indicate that there is a negative relationship between the dependent variable (inflation) and the independent variable (salary). The result of study showed that salary increase has a negative relationship with inflation and salary does not have a significant impact on inflation in Nigeria, therefore inflation is not adequately explained by changes in salary. Hence, inflation should be track led adopting other fiscal and monetary measures and not necessarily income policies.

The Nigerian economy is a middle income economy emerging market with well developed financial, legal, communication, transported entertainment sectors. It is ranked 31st in the world in terms of gross domestic product (GDP)as 2009 and its emergent through currently under performing manufacturing sectors is the second largest on the continent, for the west African region scholars have characterized the Nigerian economy to be associated with a high cost of living putting it in words,(EKAN 1998)states that Nigerian economy is characterized by high cost of living which is resultant effect of the persistent increase in the general price level in the economy. In an effect to solve the problem of low standard of living, government expenditure has been on the continual increased which is partially caused by trade unions agitations and partly by continual increase in prices of goods and services in the product and factors markets in the product.

Since the independence the country’s recurrent expenditure has been on the increase in 1970 total recurrent expenditure stood at two thousand seven hundred and thirty four naira, ninety kobo in 1980 when the economy was on a....

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Item Type: Project Material  |  Attribute: 50 pages  |  Chapters: 1-5
Format: MS Word  |  Price: N3,000  |  Delivery: Within 30Mins.


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