A survey conducted by the Central Bank of Nigeria (CBN) has shown that many Nigerians are expecting a rise in inflation and borrowing rates as well as naira appreciation in the next 12 months.
The CBN 2018 fourth quarter Consumer Expectations Survey (CES) report was released on the bank’s Website.
According to them, the major drivers of the expected upward movement will be in prices of rent, food and other household needs, telecommunication, electricity, debt payment and purchase of house.
The survey, conducted between Nov. 24 and Dec. 7, 2018, covered a sample size of 1,770 households drawn from 207 Enumeration Areas (EAs) across the country, with a response rate of 99.2 per cent.
It showed that in spite of the adverse projections, consumer overall confidence index improved in fourth quarter 2018, as more consumers were optimistic in their outlook.
“The index at 9.7 points was 8.7 points higher than the index in the corresponding period of 2017.
“Respondents attributed this favourable outlook to improved family income, family financial situation and economic condition.
“The consumer outlooks for the next quarter and next 12 months were positive at 33.2 points and 28.4 points, respectively, the survey said.
They said the outlook could be attributed to the expected increase in net household income, the anticipated improvement in Nigeria’s economic conditions and expectations to save a bit and or have plenty over savings in the next 12 months.
On the price changes outlook, the survey said most respondents expected prices of goods and services to rise in the next 12 months, with an index of 13.3 points.