AN ANALYSIS OF INFLATION AND STANDARD OF LIVING IN NIGERIA: A CASE OF AKWA IBOM STATE

The study examined the impact of inflation on the standard of living in Akwa Ibom State, Nigeria, focusing on its effects on income levels, unemployment, access to basic services, and the cost of living. The main objective was to assess the relationship between inflation and socioeconomic factors like income, employment, and access to essential services. Specific objectives included analyzing how inflation affected real income, job losses, and service accessibility. A quantitative research design was employed, utilizing correlation analysis to explore the links between inflation and various factors. Data were collected via surveys and analyzed statistically using Pearson correlation coefficients. The findings revealed a strong negative correlation (-0.715) between inflation and real income, indicating that inflation eroded household purchasing power. Additionally, a positive correlation (0.788) between inflation and unemployment was observed, suggesting that inflationary pressures led to increased joblessness The study also found a significant negative correlation (-0.861) between inflation and access to basic services, such as healthcare and education, demonstrating that inflation made these services less accessible, particularly for low-income households. Finally, a very strong positive correlation (0.901) between inflation and the cost of living was identified. Based on these results. the study recommended that the Akwa Ibom State government adopt policies for wage adjustments, implement subsidies and tax incentives for businesses to reduce unemployment, and provide targeted subsidies for essential services. Additionally, inflation-targeting measures. including agricultural policies to boost local food production, were advised to stabilize prices and reduce living costs for vulnerable populations.