This study examines the effect of rural-urbanisation on inflation and unemployment in urban areas with a particular focus on Lagos State, Nigeria. Primary data were collected through informal interview and structured questionnaire administered to a sample of 400 households of which 348 correctly filled and returned the questionnaire. The data were coded and rated on 5 point likert scale. Descriptive statistic and multiple regression analysis were used to analyse the data. The result shows a statistically significant positive impact of Rural-Urban Migration (RUM) on INFP. With a coefficient of 0.457, it implies that a unit increase in RUM will lead to 0.457% increase in INFP. Again, one percent unit increase in AGGCD will effect a 0.507% change in INFP, and, one percent unit increase in HEY will cause 0.085% change in INFP. Furthermore, results show that one percent unit increase in RUM effect a 0.441% change in Urban Unemployment (URUNEMP). Again, one percent unit increase in Aggregate Labour Supply (AGGLS) will lead to 0.322% change in URUNEMP and one percent unit increase in EDUL effect a 0.151% change in URUNEMP. Based on this finding, the study, therefore, recommends that appropriate urban policy that will stimulate increasing production of goods and services in the study areas should be formulates and strictly implemented. Furthermore, urban policy that will lead to more job creations in the study areas should be put in place, as this will go a long way in reducing inflationary pressure and urban unemployment.
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