September 13, 2024/CBN

1.0 Introduction

The Inflation Expectations Survey (IES) for August 2024 was conducted from August 12-16, 2024, among selected businesses and households with a sample of 1,600 and 1,650 respectively, in the 36 states of the federation and the Federal Capital Territory.

The IES aims to gather insights on how businesses and households perceive current and future inflation trends and the major drivers of inflation. By understanding how people anticipate changes in the cost of goods and services, monetary policy can be better managed to stabilize the economy and promote growth.

Highlights

• Business and household respondents believe that the current inflation rate is high. However, they expect the rate to decrease gradually over six months. 
• In line with their expectation of the inflation rate, respondents anticipate increased expenditure in the next month and the next three months. However, they expect a decline in spending in the next six months. 
• Most respondents believed that changes in the price of energy, exchange rate and transportation were the major drivers of inflation expectations during the reviewed periods. 
• Majority of the respondents preferred that the CBN decrease the interest rate. 
• Majority of respondents follow the CBN communication closely and believe that the CBN is transparent in its communication.

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