High inflation persistence in Nigeria calls for comprehensive policy actions.
The study tested inflation persistence in Nigeria using advanced statistical techniques. The results showed that inflation in Nigeria tends to stay high over time, even though it decreased slightly after the global financial crisis. Different types of inflation rates (headline, core, and food) behave similarly in the long run. This means that policies targeting one type of inflation can affect the others. Ignoring these relationships could lead to incorrect conclusions. The findings also highlight the importance of using specific methods when analyzing inflation data.