Nigerians see inflation easing by April on CBN’s policies

… inflation to hit 33% in October

Nigerian households and firms are betting on a likely cooling of prices over the next six months as the nation’s central bank struggles to tame high inflationary trends that are hammering consumers’ spending and eroding business gains.

According to October’s Inflation Expectation Survey released by the Abuja-based bank, “many respondents believe that CBN announcements impact Inflation,” even as the widespread perception holds that the current inflation rate is high with urban settlers feeling the heat the most.

“The overall perception of the current inflation rate shows that most respondents believe the inflation rate is high,” the CBN said.

“Further analysis indicates that this perception is mainly driven by household respondents,” it added.

The report further revealed that of all types of businesses, small businesses, which account for 96 per cent of Nigerian businesses and 84 per cent of employment were the hardest hit by high inflationary pressures.

This is just as households with an income group of N150,000 to N200,000 were the ones grappling more with high prices which has weakened their purchasing power and increased poverty levels.

The survey revealed that the major driver of inflation for both households and firms is the rising energy cost. Both petrol and electricity costs, particularly for Band A, have soared since the removal of its unsustainable subsidies by the new government.

The President Bola Tinubu administration last year cancelled some costly gasoline subsidies that have kept prices artificially low as part of the series of ongoing reforms to kickstart the slowing economy. But this has raised prices and led to a cost of living crisis for ordinary Nigerians.