Inflation bites hardest among upper-lower-income Nigerians, CBN survey shows
Nigerians earning between N150,000 and N250,000 monthly were the most likely to describe inflation as high in July 2026, according to Central Bank of Nigeria. The finding was contained in the CBN’s July 2026 Inflation Expectations Survey Report, released by the Statistics Department under the Economic Policy Directorate.
According to the survey, 71 per cent of respondents within the N150,001–N250,000 monthly income bracket said inflation was high, the largest proportion recorded across the income categories covered. By comparison, 55.6 per cent of respondents earning between N350,001 and N450,000 monthly shared the same view.
“An analysis of households’ perceptions by income revealed that households earning N150,001–N250,000 monthly, at 71.0 per cent, had the highest proportion of respondents who perceived inflation as high,” the CBN said.
The result suggests that Nigerians in the lower-middle-income bracket may be experiencing particularly severe pressure as their earnings remain insufficient to absorb the rising cost of food, transportation, electricity, rent and other essential expenses.
Inflation perception was also high among lower-income households. About 66.2 per cent of respondents earning below N70,000 monthly said prices were high, while the figure rose slightly to 66.9 per cent among those earning between N70,000 and N150,000.
Overall, the Inflation Perception Index stood at 40 points in July, indicating that households and businesses generally considered prevailing prices of goods and services to be high.
However, the survey showed an improvement in expectations for the coming months. The Inflation Expectation Index stood at 21.2 points, suggesting that respondents anticipated some moderation in inflation in August.
The pressure was also more pronounced among small businesses, which are particularly vulnerable to rising energy, transportation, rent and financing costs. Microbusinesses recorded the highest perception of elevated inflation at 70.6 per cent, while large businesses reported the lowest.
Urban households were similarly more likely to feel the impact of high prices. The survey showed that 68.8 per cent of urban respondents perceived inflation as high, compared with 64.3 per cent of rural households.
Despite the immediate pressure, businesses appeared increasingly optimistic about the medium-term outlook. While only 17 per cent expected inflation to moderate within one month, 29.7 per cent anticipated a decline over the next six months.
The improving expectations followed a marginal reduction in Nigeria’s headline inflation rate to 15.91 per cent in June 2026, from 15.93 per cent in May. Month-on-month inflation also slowed to 1.66 per cent, compared with 1.75 per cent in the preceding month.
However, the slower rate of inflation does not mean that prices have fallen. It indicates that prices are still rising, but at a slightly slower pace, leaving households to contend with the accumulated increases recorded in previous years.
What to Know:
The latest survey reflects the lingering effects of Nigeria’s prolonged cost-of-living crisis, which intensified after the removal of the petrol subsidy and foreign-exchange reforms in 2023 triggered sharp increases in transport, food, electricity and production costs. Although headline inflation has moderated from 25.29 per cent in June 2025 to 15.91 per cent in June 2026, household incomes have not recovered at the same pace and prices remain well above earlier levels. The PiggyVest Savings Report 2025 found that nearly three in five Nigerians either had no monthly income or earned below N100,000, while previous consumer surveys repeatedly identified food, energy and transportation as the strongest sources of price pressure. The latest CBN findings therefore show that easing official inflation figures have yet to translate into broad relief, particularly for lower-middle-income earners, urban households and microbusinesses.
