.............is presently used in Nigeria to measure inflation

Analyze the question: The question asks which measure is currently used in Nigeria to track inflation, meaning the general rise in prices over time.

Explain the concept: Inflation is measured by tracking how the prices of a representative "basket" of goods and services change over time. In Nigeria, the National Bureau of Statistics (NBS) does this every month and publishes the result as the Consumer Price Index (CPI). Headline inflation, food inflation, and core inflation are all calculated from the CPI.

Go through the options:

• A. GNP implicit price deflator: This is a broad measure of price changes across the whole economy. Economists use it, but it is not the official inflation measure in Nigeria.
• B. Consumer price index: This tracks the prices of goods and services bought by households, and it is the official measure the NBS reports monthly. ✔
• C. Wholesale price index: This tracks prices at the wholesale (producer) level. Some countries use it, but Nigeria does not use it as its main measure.
• D. Real GDP: This measures the output of the economy adjusted for price changes. It measures growth, not inflation.

Solution: Formula: CPI = (Cost of basket in current year ÷ Cost of basket in base year) × 100

Inflation rate = [(CPI now − CPI before) ÷ CPI before] × 100

For example, if CPI rises from 200 to 220, inflation = (20 ÷ 200) × 100 = 10%.

Answer: The correct option is B. Consumer price index.

Tip: When you see "measure of inflation in Nigeria," think CPI. Remember that CPI relates to Consumers and Prices, the same things households face in the market. Real GDP is for growth, not inflation.