LAP LAMBERT Academic Publishing Olaniyan, S: Inflation Rates and Performance of Manufacturin

This study examined the nature and causes of inflation in Nigeria and the effects of inflation and interest rates on manufacturing sector between 1970-2004. The methods of analysis were descriptive and econometrics.Granger causality test was also used to identify the direction of causation of the variables.The results showed that inflation rates negatively influenced the manufacturing output for the entire period.