Article Details

This study examines inflation persistence in Nigeria from 1980 to 2024 using a multivariate time series analysis. It investigates the relationship between inflation and key macroeconomic variables such as exchange rate, money supply, interest rate, fiscal deficit proxied by external debt stock and GDP growth. The analysis reveals that interest rate policy is effective in containing inflation in the short and medium run and exchange rate volatility and external debt are important inflationary channels. Hence, a coordinated policy mix combining prudent fiscal management, active exchange rate stabilization, and targeted monetary policy is necessary to achieve durable price stability.