Dynamics and Implication of COVID-19 Pandemic on Inflation Volatility in Selected African Countries: A Dynamic Panel Data Analysis

Abstract

The unending posture of COVD 19 pandemic is given rise to concern of policymakers around the globe, of which several studies have been conducted investigating the challenges of the pandemic. Meanwhile, studies suggested the need for more investigation on the implications of COVID 19 pandemic on macroeconomic indicators which has not been exhaustively investigated. Thus, this study attempt to investigate the impact of COVID is pandemic and other variables on volatility of inflation in some selected African countries using monthly data from January 2020 to December 2020 and employed GMM estimation techniques for the data analysis. The results revealed that the number of COVID 19 cases trigger the volatility of inflation, while the COVID 19 policy measures put in place significantly reduced the volatility of consumer price index in the selected African countries. Finally, the findings implications for policymakers in the selected countries and similar countries in nature were presented in the study.