The Central Bank of Nigeria (CBN) has forecasted a gradual decrease in the country’s inflation rate over the next six months, according to its newly released report on inflation expectations for February 2025. The report indicates a general sentiment among businesses and households expecting inflation to ease, as their spending is anticipated to diminish in the coming months.
The analysis within the report revealed that households earning above N200,000 per month are more optimistic about the moderation of inflation. Factors influencing these perceptions include energy costs, exchange rate fluctuations, transportation costs, interest rates, and security concerns.
While the CBN reports these expectations, it also notes that a significant portion of respondents, 65.1%, are calling for a reduction in interest rates. This comes as the National Bureau of Statistics reports a decrease in the inflation rate to 23.18% year-on-year in February 2025, a drop from 24.48% in January. The current rate represents a notable decline from 31.70% in February 2024, attributed in part to the implementation of a new CPI rebasing methodology.
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