Over the next six months, fluctuations in energy prices, exchange rates, and transportation expenses are expected to be the main drivers of inflation, according to the Central Bank of Nigeria (CBN). In its "Inflation Expectations Survey for August," released on Thursday, the CBN provided the inflation outlook. The study is conducted in the wake of Nigeria's inflation rate dropping to 33.40 percent in July from 34.19 percent in June. According to CBN, the survey's foundation was built by the responses of businesses and households that were questioned about how they saw the inflation rate. 

Businesses and families anticipate that fluctuations in energy prices, exchange rates, and transportation expenses will be the main drivers of inflation during the next six months, according to the financial regulator. The respondents anticipate a modest decrease in the inflation rate over the next six months, according to the apex bank, "as their indices showed considerable improvement over the review periods."  In contrast to families, the study indicates that corporations are expecting a lower rate of inflation.

According to CBN, respondents anticipate higher spending over the next three and next month, with positive indices of 29.2 and 30.3 points, respectively. "Nevertheless, a negative index of -7.8 points indicates that they anticipate a significant decline in their spending over the next six months," according to CBN. "Businesses indicated a consistent decline in their expenditure appetite over the reviewed periods, while households expect to maintain their expenditure basket until October 2024 but significantly decrease it in February 2025." According to the CBN, 84.9 percent of respondents thought the rate of inflation in August was too high overall, "culminating in an index of -63.2 points."

According to CBN, energy prices, transportation costs, and exchange rates were the main determinants of how households and companies perceived inflation.