A recent Inflation Expectations Survey Report by the Central Bank of Nigeria (CBN) reveals that 85.5 percent of large businesses perceive inflation in Nigeria as high, the highest among all business categories surveyed. In contrast, small businesses recorded the lowest perception of high inflation at 77.6 percent.
The report, which surveyed 3,565 respondents, including 1,900 firms and 1,665 households, highlights that inflation perception among medium-sized businesses stood at 78.2 percent, while 80.9 percent of micro-businesses also reported a high expectation of inflation.
The survey also showed a notable difference in inflation perceptions based on settlement type and income levels. Urban residents are more likely to view current inflation rates as high compared to their rural counterparts. Among households, those earning between N150,001 and N200,000 per month were most likely to perceive inflation as high.
Respondents identified key drivers of their inflation perception, including rising energy costs, exchange rate volatility, increased transportation costs, and high interest rates. Businesses and households expect inflation levels to gradually decline over the next six months. However, more businesses anticipate higher expenditures in the current month compared to households.
Interestingly, 90 percent of respondents believe the CBN is transparent in its communication, reflecting trust in the institution’s efforts to address inflation.
The report emphasises that the findings are based on survey responses and do not represent the official position of the Central Bank. Percentages were used to determine majority views, while indices ranked the drivers of inflation.
Respondents for the survey were drawn from the establishment frame of the National Bureau of Statistics (NBS) and the National Population Commission (NPopC) list of Enumeration Areas (EAs). The survey aimed to track changes in perception and expectations regarding inflation among businesses and households.
This latest report underscores the significant impact of inflation on businesses and households across Nigeria. As the CBN continues its efforts to stabilize the economy, it remains crucial for policymakers to address the underlying factors influencing inflation perceptions to foster economic growth and stability.
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