The Impact of NEEDS on Inflation Rate in Nigeria: An Intervention Analysis

Abstract

This paper examined the effect of NEEDS on inflation in Nigeria using intervention Analysis. The data used for this study were secondary data on inflation rates which were collected from the Central bank of Nigeria Bulletin, 2012 for the period 2003 to 2013. Our results revealed that NEEDS has abrupt temporary effect on inflation. We therefore recommended that more efforts be made to ensure continuous implementation of policies needed to combat inflation.

Keywords: Inflation, Autoregressive process of order one, transformation, differencing, Intervention model.