The latest Inflation Expectation Survey Report released by the Central Bank of Nigeria (CBN) on Friday revealed that 50.6 per cent of businesses expect inflation to rise in January, following a challenging year where rising prices affected company earnings.

The survey, which gathered responses from 1,900 firms and 1,665 households, indicates that businesses expect higher expenditure in the current month compared to households.

“In line with the inflation perception in the current month, more businesses expect higher expenditure compared to households in the current month,” CBN stated.

The CBN report added that most respondents view the inflation rate as high, with household respondents predominantly driving the sentiment in the month under review.

The respondents highlighted energy costs, exchange rates, transportation costs, and interest rates as key factors influencing their inflation perception.

Nigeria’s inflation rate stood at 34.8 per cent in December 2024, driven by rising food prices and transportation costs, according to the National Bureau of Statistics (NBS).

Among large businesses, 85.5 per cent perceive inflation as high, reflecting ongoing economic difficulties. The perception is also widespread among urban and rural dwellers, with 83.9 per cent of urban settlers and 82.8 per cent of rural settlers considering inflation high.

“A breakdown of the perception indicated that large businesses have the highest inflation perception, while small businesses recorded the lowest perception,” the report stated.

It also revealed that more households earning between N150,001 and N200,000 per month perceive inflation to be high.

Despite inflation concerns, businesses and households anticipate a gradual decline in the rate over the next six months, leading to expectations of reduced expenditure.