INFLATION AND THE COST-OF-LIVING CRISIS: WHAT PUBLIC POLICY OPTIONS FOR NIGERIA TO WEATHER THE ECONOMIC STORM?

For many nations around the world, inflation has been a major economic fret. The most severe increase in inflation in over thirty years has im pacted fiscal accounts, exacerbated poverty, and changed the distribution of households’ well-be ing, necessitating a response from policymakers. However, inflation’s distributive implications are much more complicated. The study explores the effect of inflation on the cost-of-living cri sis in Nigeria. Utilizing documentary research design, the study examines official publications of government agencies and non-governmental organizations that address inflation trends, cost of-living index and other related macroeconomic indicators in Nigeria. Data obtained were ana lysed using quantitative and qualitative content analysis. Findings indicated that Nigeria’s infla tion rate has been higher than the sub-Saharan and African average for years, surpassing 24% in 2023. It also revealed that Nigeria’s inflation devalues the local currency and lowers citizens’ purchasing power, thus making the poor more impoverished and even the working class more susceptible. The study suggests that, to address Nigeria’s inflation and cost-of-living crisis, the government should implement substantial changes through restrictive monetary policy and adopt fiscal tightening measures – also called contractionary fiscal policy – to foster economic stabilization.