Adversity of FOREX dominated pricing of consumer goods on consumption and Savings of individuals

Abstract

This study examines how businesses use the fluctuations in the foreign exchange to fixed-up artificial price to consumer goods thereby negatively affecting the purchasing power of the consumer. A price is the consideration for the value of a product or service and is arrived at after a series of calculation, research and understanding and risk taking ability. However, businesses uses the Forex fluctuations to arbitrarily fixed- up selling prices for their products without taken input cost into consideration, thereby adversely affecting the purchasing power of the consumer. The study employs the use of questionnaire administered to the Federal Polytechnic Damaturu community to obtain primary data. The data obtained were analyzed using descriptive and inferential statistics. The result shows that Price increase and MPC is statistically significant suggesting that price increase of consumer goods has a strongly, significantly and positively influence on MPC, while it indicates an insignificant positive effect of Price increase on MPS. Suggesting that price increase of Consumer goods has no significant influence with MPS. Thus it was concluded that government should put in mechanism to moderate consumer goods prices, and not allow the market prices to be dominated by movement of foreign exchange</em></p>