It is very concerning to me that households and markets are no longer expecting us to keep inflation near our 2 percent target over the next three to five years. Now, it is true that there is some evidence that these consumer survey measures of future inflation tend to move around a lot based on changes in current inflation.
The impact of this decline on our reserves was evident in the rise in the value of the US Dollar relative to the Naira; and a rise in the Consumer Price Index due to the increase in the cost of imported inputs and goods.