By Henry Boyo
NIGERIANS know too well, that sinking feeling when all items on the household shopping list cannot be covered by the usual monthly budget. The options invariably become whether to cut down or do without some basic items, or alternatively make do with less preferred but cheaper substitutes. The depressive impact of a continuous price spiral on the average family’s welfare is, therefore, a very familiar theme.
Even though the distortional impact of Inflation is boundless, it is also recognized that a little rise in price level may sometimes be necessary to stimulate economic growth; it however, becomes an albatross when the general price level remains above five per cent annually! In progressive economies, the Authorities target inflation rates below two per cent to stabilize purchasing power of income earners and preserve social welfare and the value of pension funds. Disturbingly, however, the price level in our case has often remained above 10 per cent…
