INFLATION AND ITS EFFECT ON THE COST OF GOODS AND SERVICES IN UGEP, CROSS RIVER STATE

This study examined the effect of inflation on the cost of goods and services in Ugep, Cross River State, Nigeria. Using a survey research design, data were collected from 384 respondents comprising consumers, retailers, and food vendors through structured questionnaires. The study analyzed inflation trends from 2020 to 2024 and their impact on purchasing power, business operations, and household consumption patterns. Results revealed a significant positive relationship between inflation rates and the cost of goods and services (r = 0.847, p < 0.05), with food prices increasing by an average of 156% over the four-year period. The study found that inflation significantly reduced household purchasing power, with 78.4% of respondents reporting decreased consumption of essential goods. Chi-square analysis confirmed significant associations between inflation and changes in consumer behavior (χ² = 142.68, p < 0.001) and business pricing strategies (χ² = 168.34, p < 0.001). The findings underscore the severe economic challenges faced by residents of Ugep due to persistent inflation. Recommendations include implementing localized price monitoring systems, establishing commodity distribution centers, promoting local production, and creating social protection programs targeting vulnerable populations.