Relative Price Variability and Inflation: Evidence from the Agricultural Sector in Nigeria

"The main objective of this study is to establish quantitative relationships among the relative price volatility of agricultural commodities, inflation and agricultural policies in Nigeria. The findings suggest the need for policies that will buffer the agricultural sector from the effects of inflation in the short run, and in addition the crops subsector from the long-run effect of inflation. Similarly, policies that reduce the rate of inflation will minimize relative price variability among agricultural commodities and consequently reduce inefficiency,distortions and misallocation of resources in agriculture that might be caused by inflation."