On the relationship between fuel and food prices in Nigeria
I wrote a short paper for the Nigeria Economic Society conference a couple of weeks ago. As the title suggests, the paper seeks to understand what happens to food price inflation if you have a fuel price shock. Motivated by the fuel subsidy removal. The paper is not based on any theory per say but is simple a statistical association given that there have been multiple fuel price shocks (or fuel subsidy removals) in the past. And that there is good data on fuel and food prices both at the national and state level.
The main finding is that, yes, on average you do find impacts of fuel price shocks on food prices. Positive for a few months but then a correction. A more nuanced finding is also present for state level shocks as well.
It is a working paper so comments and feedback to improve the paper are welcome. It can be found linked below: