Inflation and Household Purchasing Power in Nsukka Urban Area: A Trend Analysis from 2019 to 2024

Persistent inflation has consistently eroded household purchasing power across Nigerian urban centers, placing considerable burden on low- and middle-income families. This study analyzes the relationship between inflation trends and household purchasing power in Nsukka urban area, Enugu State, covering the period from 2019 to 2024. The study draws on the Quantity Theory of Money as its theoretical anchor, which establishes a direct relationship between money supply, price levels, and economic output. A descriptive survey research design was adopted, targeting 2,500 households within Nsukka urban area. A sample of 333 households was drawn using stratified random sampling based on residential income zones. Structured questionnaires and secondary data sourced from the National Bureau of Statistics (NBS) served as instruments for data collection. Findings indicate that cumulative inflation between 2019 and 2024 reduced the real purchasing power of average Nsukka households by nearly 41 percent, with food inflation bearing the heaviest impact on lower-income groups. Essential commodity prices rose disproportionately relative to wage adjustments within the same period, deepening economic vulnerability among non-salaried residents. The study concludes that unchecked inflation constitutes a severe impediment to household welfare in urban Nsukka and demands coordinated policy attention. It is recommended that the Central Bank of Nigeria intensify monetary tightening measures and that state government authorities introduce targeted price stabilization programs for food staples in Enugu State markets.

Keywords: Inflation, purchasing power, household welfare, Nsukka, monetary policy