A latest survey by the Central Financial institution of Nigeria reveals that companies and households anticipate a gradual easing of inflation over the subsequent six months.
The Inflation Expectations Report for February 2025, launched on Wednesday by the CBN’s Statistics Division, signifies a shift in sentiment as respondents specific cautious optimism concerning the nation’s financial outlook.
The survey, which gathered responses from 3,565 contributors—comprising 1,900 companies and 1,655 households—discovered that a good portion of respondents count on inflationary pressures to decrease.
For the subsequent month, 40.3 per cent of general respondents foresee inflation rising, whereas 47.1 per cent consider it should stay secure, and 12.6 per cent predict a lower.
Nevertheless, over an extended horizon, the outlook turns into extra optimistic. Over the subsequent six months, 44.3 per cent count on inflation to rise, however 28.6 per cent anticipate stability and 27.1 per cent forecast a decline.
Companies seem not so optimistic about inflation easing, with 40.3 per cent predicting a lower over the subsequent six months, in comparison with 29.8 per cent who count on it to rise.
Households are barely extra cautious, with 48.8 per cent anticipating greater inflation and 24.1 per cent forecasting a decline over the identical interval.
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Expenditure outlook
The survey additionally sheds mild on expenditure plans which might be consistent with inflation expectations.
Companies usually tend to improve spending within the present month, with 46.7 per cent planning greater expenditure in comparison with 32.6 per cent of households.
This means that companies could also be making ready for progress or funding regardless of the broader financial uncertainties.
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The survey additionally reveals the general public’s confidence within the CBN’s communication.
An amazing 98.9 per cent of respondents described the central financial institution’s communication as clear, whereas 98.4 per cent said that they comply with the CBN’s bulletins intently.
Moreover, 65.1 per cent of respondents expressed a want for the CBN to cut back rates of interest, reflecting widespread concern over the price of borrowing and its influence on financial exercise.
In response to the Nationwide Bureau of Statistics, Nigeria’s annual inflation price eased to 23.18 per cent in February from 24.48 per cent in January 2025.
The statistics workplace stated the February 2025 headline inflation price decreased by 1.30 per cent in comparison with the January 2025 headline inflation price.
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