Nigeria’s Inflation vs Real Income

Nigeria’s Inflation rate stood at a 43-month low at 11.02% in August 2019. What worries me is the astronomical increase in the Consumer Price Index (CPI), which is simply an accumulation of prices. Between January 2009 and August 2019, the CPI increased by 228%, but have we seen commensurate growth in productivity and real income on a wider scale? The chart provides a clue. Clearly not the case of ‘too much money chasing fewer goods’.