The inflation expectations survey report by the Central Bank of Nigeria revealed that 85.1% of households and 80.7% of businesses believe the current inflation rate is high, with households primarily driving this sentiment. Inflation perception refers to how individuals or groups understand, interpret, and feel about the current rate of inflation. It reflects subjective views on how changes in the prices of goods and services affect purchasing power. The report shows that large businesses had the highest inflation perception in November at 87%, followed by micro businesses at 82.3%, medium businesses at 79.4%, and small businesses at 78.4%. By settlement type, urban residents reported a higher inflation perception (85.5%) than rural residents (84.4%). Among households, those earning between ₦100,000 and ₦150,000 per month had the highest inflation perception at 88.7%, while those earning above ₦200,000 had the lowest. Key drivers of inflation perception include rising energy and transportation costs, insecurity, and exchange rate depreciation. High inflation perception can weaken consumer and business confidence, widen income inequality, and exacerbate the rural-urban divide, potentially fueling economic dissatisfaction and social unrest. For businesses, heightened inflation perception could result in job cuts, undermining monetary policy effectiveness and stalling economic growth. To tame inflation expectations, the government needs to prioritize targeted reforms in key sectors including energy and transportation. Additionally, the government needs to implement policies to stabilize the naira and provide support to the most vulnerable households

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