The Inflation Rate and the Prices of Roofing Sheets in Benin City

This research aimed to examine the correlation between the inflation rate and the cost of roofing sheets in Benin City to help minimize the negative impact of inflation on the construction sector. The study analyzed the inflation rate and the prices of selected roofing sheets from 2017 to 2022, and the link between the inflation rate and the prices of these roofing sheets was determined using Spearman’s correlation coefficient and Regression analysis. Inflation rate data was sourced from the Central Bank of Nigeria, while the prices of the selected roofing sheets were gathered through a market survey. The study found that the inflation rate reached its peak in 2022. Additionally, the prices of the selected building materials showed an increasing trend from 2017 to 2022. Through the percentage deviation of the variables, it was established that a 1% rise in the inflation rate would result in a 5.27% increase in the price of Corrugated Zinc roofing sheet, a 6.79% increase in the price of Corrugated Zinc roofing sheet from Ghana, a 1.40% increase in the price of Shortspan Aluminium roofing sheet, a 3.16% increase in the price of Coloured longspan roofing sheet, a 4.93% increase in the price of Stucco longspan roofing sheet, and a 2.24% increase in the price of Stone coated roofing sheet. Correlation analysis confirmed the existence of a relationship between inflation and the prices of roofing sheets. Furthermore, Regression analysis indicated that the prices of Corrugated Zinc roofing sheets, Corrugated Zinc roofing sheets from Ghana, Shortspan Aluminium roofing sheets, Coloured Longspan Aluminium roofing sheets, Stucco Longspan Aluminium roofing sheets, and Stone Coated roofing sheets would increase by ₦65.73k, ₦57.89k, ₦63.97k, ₦193.2k, ₦286.6k, ₦62 respectively for every unit increase in the inflation rate. It was recommended that the Government should provide subsidies and tax incentives that will promote the local production of roofing sheets to reduce dependency on imports and effects from inflation fluctuations.