CBN Inflation Expectations Index Declines in January 2026

The Central Bank of Nigeria (CBN) reported a slight decline in the inflation expectations index, dropping from 41.7 points in December 2025 to 41.4 points in January 2026. This change signals a marginal improvement in price sentiment across the economy, reflecting a shift in perceptions among businesses and households, despite ongoing structural cost pressures.

The latest inflation expectations survey indicates that business inflation sentiment softened during the review period, with businesses reporting a decrease in inflation perception from 48.3% in December 2025 to 45.2% in January 2026. Households expect inflation to remain stable over the next month, three months, and six months, despite concerns regarding energy costs.

The survey highlights that energy, transport, and exchange rate movements are significant drivers shaping price perceptions. The National Bureau of Statistics is expected to release the inflation report next week, which will provide further insights into price perceptions and their impact on spending behavior and wage negotiations.