Publications

Inflation is an increase in general level of goods and services over a given period, resulting to a fall in thepurchasing capacity of the fixed wages and income earners. The trade-off between inflation and performance isthat, the increase in the prices of commodities reduces consumer‘s marginal propensity to save, which adverselyaffect the peoples’ standard of living. Inflation in Nigeria, has led to the obvious devaluation of the naira and thishas grossly reduced the value of fixed income earners. Inflation is anti-workers’ economic growth and prosperitybecause it allows for arbitrary increase of prices of goods and services to the detriment of workers’ fixed incomeeven when it is glaring that their purchasing power is being reduced persistently and that eventually erodes theirpropensity to save. In other words, the purchasing power of a given amount of money will be smaller over timewhen there is inflation in the economy. Inflation at this instance can therefore be described as a cankerworm thateat up the income of fixed earners and as such affects drastically the standard of living of citizens. This, oftentimesbrings about frustration and anger due to the inability to attend to family needs and cope with the high cost oftransportation to work, buying of food items to feed, paying of electricity or medical bills, renewing of house rentand other issues of utmost importance among others. This paper therefore appraised the impact of inflation onworkers performance.