Nigerian Businesses and Households Anticipate Inflation Rise in Coming Months

Businesses and households in Nigeria expect inflation to increase over the next three to six months, according to the July Inflation Expectations Survey Report from the Central Bank of Nigeria, released on Tuesday.

The survey reveals that respondents anticipate a rise in inflation over the review months, with indices of 37.4 for the upcoming month, -26.3 for the next two months, and -15.8 for the following six months.

Despite this, respondents believe that inflation will gradually decline over the next six months.

Further research indicates that businesses, compared to households, have a more optimistic outlook on inflation rates. Businesses expect inflation to decrease, with indices of -11.0 for the upcoming month and -33.4 points for six months ahead. “Overall, both businesses and households believe that the inflation rate will rise further in the periods,” the survey notes.

The report also identifies changes in energy prices, currency rates, and transportation costs as the primary factors driving the expected rise in inflation.

This report comes weeks after Nigeria's inflation rate slightly decreased from 34.19 percent in June to 33.40 percent in July.

To combat inflation, the Central Bank has been implementing tighter monetary policies, including raising the interest rate, which is currently set at 26.75 percent.