IMPACT OF PRICE LEVEL CHANGE ON CONSUMER PURCHASING POWER IN NORTH-EASTERN STATES IN NIGERIA
Penuel Alheri Peter, John Iliya , Gehya E. Filli, PhD and Pwaveno Glory Dishi_Khobe
Volume 6 Issue 1
Abstract
This study examined how price level changes affect consumer purchasing power in Adamawa, Borno, and Yobe States. It focused on demand-pull, cost-push, structural conflict-induced, and imported inflation. A survey design was adopted, and a structured questionnaire was administered to household heads selected through multistage sampling. Of the 440 questionnaires distributed, 398 valid responses were analysed using descriptive statistics and multiple regression. The instrument showed satisfactory internal consistency, while the analysis accounted for household income, household size, education, employment, displacement, and access to credit. The findings show that all four forms of inflation reduce household purchasing power. Structural conflict-induced inflation produced the greatest loss, followed by cost-push and imported inflation, while demand-pull inflation had the least effect. Household income, employment, and access to credit supported purchasing power, whereas larger household size and displacement increased vulnerability. Households commonly responded by buying cheaper food, reducing portions and meals, borrowing, and disposing of productive assets. The study concludes that inflation in the North-East is driven mainly by insecurity and supply constraints rather than excess demand alone. It recommends securing farming and transport corridors, restoring markets and rural infrastructure, reducing energy and logistics costs, stabilising the exchange rate, and expanding targeted cash, food, and livelihood support for displaced and low-income households. Keywords: Price Level Change; Purchasing Power; Structural Inflation; Cost-Push Inflation; North-Eastern Nigeria
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