Contrast between various frequency components of sound is enhanced through a lateral suppression strategy to provide increased speech perception in the electrically stimulated cochlea. A received audio signal is divided into a plurality of input signals, wherein each input signal is associated with a frequency band. A plurality of envelope signals are generated by determining the envelope of each of a plurality of the input signals. At least one of the envelope signals is scaled in accordance with a scaling factor to generate at least one scaled envelope signal. An output signal is generated by combining at least one envelope signal with at least one scaled envelope signal, and the cochlea is stimulated based on the generated output signal. The lateral suppression strategy can be applied to one or more frequency bands using scaled amplitude signals associated with one or more neighboring frequency bands.