CBN projects gradual drop in inflation rate next 6 months

*The Central Bank of Nigeria projects a gradual drop in the country’s inflationary rate over the next six months

Isola Moses | ConsumerConnect

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

The CBN disclosed this in its fresh report released on inflation expectations for February 2025.

The report indicated that businesses and household respondents would expect the level of inflation to gradually reduce over the next six months.

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

The Bank also noted 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, stated that 65.1 percent of respondents in the survey wanted a reduction in interest rate by the financial institutions.

In a related development, the National Bureau of Statistics (NBS) in its Consumer Price Index (CPI) report for March 2025, released Monday, March 17, 2025, showed the inflation rate for February dropped to 23.18 percent year-on-year February this year, reflecting a second consecutive monthly decline from the 24.48 percent recorded January.

According to the Bureau, the figure marks a significant 8.52 percentage point decrease from the 31.70 percent seen February 2024, following the adoption of a new CPI rebasing methodology.