Application of Regression Analysis in Forecasting Inflation in Nigeria

Economics — 2025, Undergraduate

This study applied regression analysis to forecast inflation in Nigeria using historical price and monetary data. Time series data on inflation, money supply, and exchange rates were analysed using econometric techniques including diagnostic tests. The findings revealed that monetary aggregates and exchange rate movements significantly explained variation in inflation, with the estimated models producing reasonably accurate short-run forecasts. The study observed structural breaks and data quality challenges that complicated long-run prediction. It recommends robust modelling approaches, improved data quality, and use of forecasting in policy planning.

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