The Central Bank of Nigeria (CBN) has projected a gradual decline in the inflation rate over the next six months, according to its recently released inflation expectations report for February 2025.
Report highlights that both businesses and households anticipate a steady reduction in inflation over the coming months. Respondents also expect a decrease in their spending as their expenditures gradually decline.
An analysis based on income distribution revealed that households earning above N200,000 per month were more likely to perceive inflation as moderating. Factors such as energy costs, exchange rates, transportation expenses, interest rates, and insecurity were seen as key drivers influencing their views on inflation during the period.
Additionally, the CBN noted that 65.1% of respondents expressed a desire for a reduction in interest rates by the central bank.
In related developments, the National Bureau of Statistics (NBS) released its Consumer Price Index (CPI) report for March, revealing that the inflation rate for February 2025 dropped to 23.18% year-on-year.
This marks a second consecutive monthly decline from 24.48% recorded in January, and an 8.52 percentage point decrease from the 31.70% reported in February 2024, following the adoption of a new CPI rebasing methodology.
