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Economy will end weaker if prices rise – CBN survey

Central Bank of Nigeria, CBN
Central Bank of Nigeria, CBN

The Central Bank of Nigeria (CBN) Inflation Attitudes Survey (IAS) report shows that consumers are worried over rising prices and inflation, saying the economy would end up weaker if prices start to rise faster than they do now.

The report for the third quarter released by the CBN, yesterday, also said most respondents said given a trade-off between inflation and interest rates, they would prefer interest rates to fall, while inflation rate rose.

Also, the data showed that majority of the respondents are of the view that it would be best for the Nigerian economy if interest rates went down.

Since June 2009, the Statistics Department conducts the inflation attitudes survey on quarterly basis, to sample the views of households on how they view the price changes of goods and services in the last 12 months, and their expectations of price changes over the next 12 months.

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Respondents’ opinions were used to explore the general public’s understanding of monetary policy framework. This is because inflation expectations and public understanding of what influences them are important parameters for successful monetary policy formulation.

Good estimates of inflation expectations and the level of public understanding of the underlying factors would assist the bank to assess the impact of its efforts in maintaining price stability in the Nigerian economy.

The CBN said the Q3 2018 Inflation Attitudes Survey was conducted during the period September 24 to October 4, 2018 from a sample size of 1770 households randomly selected from 207 enumeration areas (EAs) across the country, with a response rate of 96.9 percent.

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