The Central Bank of Nigeria released its January 2025 Inflation Expectations Survey report, showing that households and businesses broadly perceive current inflation as high, with household responses predominantly driving the sentiment. Overall, 81.5% of respondents rated inflation as high, 11.5% as moderate and 7.0% as low, while large businesses recorded the highest share of “high” inflation perception (85.5%) compared with small businesses (77.6%). The share of respondents expecting inflation to fall increased with the time horizon, from 11.4% for the next month to 25.6% over the next three months and 32.8% over the next six months. Energy costs, the exchange rate, transportation costs and interest rates were identified as the main factors influencing inflation perceptions. Respondents also reported a preference for the Central Bank of Nigeria to reduce interest rates (67.6%), with 19.9% favouring no change and 12.5% an increase; 98.8% said they follow the central bank’s communication and 90.6% viewed it as transparent. The survey covered 3,565 interviews (1,900 firms and 1,665 households) and the report notes that results reflect respondents’ views rather than the Central Bank of Nigeria’s.
Central Bank of Nigeria 2025-02-13
Central Bank of Nigeria publishes January 2025 inflation expectations survey with 81.5% of respondents rating current inflation as high
The Central Bank of Nigeria's January 2025 Inflation Expectations Survey indicates that 81.5% of respondents perceive inflation as high, with large businesses showing the highest concern. Key inflation drivers include energy costs, exchange rates, transportation, and interest rates. A majority of respondents prefer a reduction in interest rates, and 90.6% view the central bank's communication as transparent.