THE IMPACT OF INFLATION ON THE CONSUMPTION PATTERN OF I.M.T. STUDENTS

By

OBONADHUZE FAITH I.

Presented To

Department of Accountancy

ABSTRACT

Inflation is a broad topic and has various ways it a affects the lives of various segments of people. This project work is designed particularly to see how inflation affects the consumption pattern of students.

The researcher saw the need to know how inflation has affected the various sections of the economy and also how it can be curvet.

I believe that at end of this project work, some suggested solutions and recommendation must have been made that will go a long way to help curb inflation.

TABLE OF CONTENT

COVER PAGE I

TITLE PAGE II

APPROVAL III

DEDICATION IV

ACKNOWLEDGEMENT V

ABSTRACT VII

TABLE OF CONTENTS VIII

CHAPTER ONE

INTRODUCTION 1

PURPOSE OF STUDY 2

SIGNIFICANCE OF THE STUDY 2

SCOPE AND LIMITATION OF THE STUDY 3

CHAPTER TWO

DEFINITION OF INFLATION 6

BRIEF HISTORY ON NIGERIAN INFLATION 8

TYPES OF INFLATION 9

CAUSES OF INFLATION 10

IMPACT OF INFLATION ON THE -

CONSUMPTION PATTERN OF STUDENTS 11

EFFECTS OF INFLATION ON LSAVING 12

EFFECTS OF INFLATION ON EXPORT 13

EFFECTS OF INFLATION OF EMPORT 13

HOW STUDENTS CAN FIGHT INFLATION 14

CHAPTER THREE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION

FINDINGS 16

CONCLUSION 17

RECOMMENDATION 18

BIBLOGRAPHY

CHAPTER ONE

1.1 INTRODUCTION

Inflation is neither new in the economic system of Nigeria nor the world at large. Variations in magnitude or rates have been noticed to be in existence.

In ;Nigeria, the rate of inflations was about 10 percent between 1969 and 1970. Prices rose by about 14 percent in 1970 (immediately after the civil war of l19700, then fell to 3 percent in 1972, rose by about 16.1 percent in 1974 and reached a rate of about 34 percent increase IN 1975. inflation was the greatest task to government's policy make in the 1970's history.

In the world, between 1799 -1801, prices rose by more than 50 percent. Also between 1939 - 1941, the price level was recorded to be almost double what it was before. The height of Henry Vil's debasement is England (through the mint reducing the weight of re-minted coins, lowering their gold and silver content and increasing the nominal values of existing coins by assigning them higher values as well as milting down plates and moment taken from the ransacked monasteries and prices), between may 1542 and min- 1551, has an inflationary rate of 16 percent per annum, 23 percent during war with France and almost 30 percent during the first world war. This is about the highest rate attained in the world history.

It is now evident that inflation persist both in the developed and developing countries with differences in magnitude or rates.

1.2 PURPOSE OF THE STUDY

The purpose of the researcher is to determine

1. how students manage inflation

2. how students are affected by inflation

3. how student can fight inflation.

1.3 SIGNIFICANCE OF THE STUDY

The importance of this study is in the fact that an analysis of the meaning, causes/types and impact of inflation on students (a market segment of the heterogeneous population) etc, will give a more realistic outlook of how the total market segment l;(the population as a whole) ;are being affected. It is hoped that a study of this nature will.

1. Expose the sufferings of the students through its findings to policy makers, for formation of most effective plans towards coping with inflation and bettering of life for every citizen.

2. Help marketers in the planning of the marketing mix for their products.

3. Assist the planning units of the government through the provision of more effectiveness of their anty-inflationary polices.

1.4 SCOPE AND LIMITATIONS OF THE STUDY SCOPE The study of inflation is a macroeconomics study and as such very broad to be handled in the study.

This study is going to specifically see the impact of inflation on the consumption pattern of IMT students. Inflation affects different classes of people in different ways. It is gain to some class of people at a particular time and can be loss to another class of people at the same time.

This study will try to find out how inflation also affects savings, export and import in a given economy. The causes of inflation l will also be handled. Finally, this study will recommend ways through which students and the public at large can fight inflation.

1.5 LIMITATIONS; The researcher of this study has gone through various limitations in the cause of this study. The ability to get students talk on how inflation has affected their consumption pattern posted a problem because some students are so reserved about the issue, others are not even sure when to say that the country's economy is facing inflation while some others find its some what exciting to talk about the researcher also encountered problems in getting materials needed for the research like, journals textbooks and past project works where inflation's effect on consumption pattern is being treated. Finally the problem of finance and time factor was also encountered.