IOSR Journal Of Humanities And Social Science (IOSR-JHSS) Volume 22, Issue 10, Ver. II (October. 2017) PP 53-59 e-ISSN: 2279-0837, p-ISSN: 2279-0845. www.iosrjournals.org DOI: 10.9790/0837-2210025359 www.iosrjournals.org 53 | Page Dynamics of Inflation in developing economies: A quest for conceptual-framework. Ibrahim AbdulhamidDanlami, 1 Mohammad Helmi Bin Hidthiir 2 Sallahuddin Hassan 3 1 School of Economics Finance and BankingUUM College of Business, University Utara Malaysia, 06010 UUM, Sintok, Kedah, Malaysia. 2 School of Economics Finance and BankingUUM College of Business, University Utara Malaysia, 06010 UUM, Sintok, Kedah, Malaysia. 3 School of Economics Finance and BankingUUM College of Business, University Utara Malaysia, 06010 UUM, Sintok, Kedah, Malaysia. ABSTRACT: The paper is aimed at making conceptual analysis of the dynamics of inflation, for the purpose of providing vital information on contemporary knowledge and understanding of the patterns and nature of effects of some variables on inflation in developing economies and countries of Commonwealth West Africa. Existing literatures on inflation and its dynamics were used as source of data for this study. Methodology used in this research was relied heavily on existing literatures (previous studies) on the subject. The paper indicated that various previous studies used a number of (but limited) econometrics models which limits the scope of the analysis of the various write ups.A number of studies reported positive significant relationships or influences by money supply, exchange rate, GDP (as a measure of economic growth), interest rate and fiscal deficit on inflation rate. The paper concluded that not all variables are in the same manner of significance and essential in explaining the dynamics of inflation in various locations. Lastly, the paper recommended some important areas to be considered and covered by the future studies on dynamics of inflation in developing economies. Keywords: Inflation, Developing Economies, Dynamics, Commonwealth --------------------------------------------------------------------------------------------------------------------------------------- Date of Submission: 29-09-2017 Date of acceptance: 06-10-2017 --------------------------------------------------------------------------------------------------------------------------------------- I. INTRODUCTION Pursuance of sustainable price stability has become one of the perpetual aims of many nations. Sustainable price stability attempts to provide and promote long term sustainable economic growth and development. High rates of increases of prices have been considered harmful to (especially, developing) economies (Sek, Teo& Wong, 2015). The principal point of discussion and argument to analyst and policymakers prevail to be inflation especially in developing economies (Mordi, et al., 2007). The consequences of high inflation rates can adversely influence the national macroeconomic setup with a possibility of obstructing the economy from the trail of sustainable growth and development. They also stressed that the importance of deep comprehension and understanding of dynamic of inflation to developing countries and economies (like Nigeria in particular and the rest of African countries in general) that depict a notable or remarkable structural disparities and uncertainties for making efficient policies that will adjust the determinants of the concerned factor or variable on the right and the needed way. Luenberger (1979) maintained that “the term dynamics refers to the phenomena that produce time- changing patterns, the characteristics of the pattern at one time being interrelated with those at other times.” Persistent changes in a series of a variable that shows no repetition (having no the same value) in two or more consecutive periods could be termed as dynamics. West African Commonwealth Countries (WACC) have been experiencing rates of inflation that are considered high and adverse to their respective economies by many scholars. It was generally, recommended that developing economies should make and retain their rates of inflation (measures by Consumer Price Index – CPI) single digit (below ten percent) for the purpose of recording meaningful progress in the quest for developing their respective economies (Risso&Sanchez-Carrera, 2009; Phiri, 2012 and Babalola, Danladi, Akomolafe&Ajiboye, 2015). The rate of inflation in WACC has been constantly changing annually to the extent that no recurrence of the same rate in two periods consecutively. Figure 1 and 2 show various inflation rates of WACC for a period of forty five years (1970 – 2014).