CBN projects continued drop in inflation for six months

CBN projects continued drop in inflation for six months 

 

The Central Bank of Nigeria has projected a gradual drop in inflation rate over the next six months.

It stated this in its newly released report on inflation expectations for February 2025.

The report said businesses and household respondents expected the level of inflation to gradually reduce over the next six months.

The respondents also anticipated lower spending as their expenditure gradually dropped over the next six months.

A further analysis by income distribution indicated that more households earning above N200,000 per month perceived inflation to be moderating, driven by factors such as energy costs, exchange rate, transportation costs, interest rate and insecurity influenced their perception of the inflation rate in the month under review.

The CBN, however said 65.1 per cent of respondents wanted a reduction in interest rate by the financial institution.

The National Bureau of Statistics (NBS) in its Consumer Price Index (CPI) report for March said the inflation rate for February dropped to 23.18% year-on-year in February 2025, reflecting a second consecutive monthly decline from the 24.48% recorded in January.

This figure marks a significant 8.52 percentage point decrease from the 31.70% seen in February 2024, following the adoption of a new CPI rebasing methodology.