Executive summary
- The annual Inflation rate for Namibia increased to 4.1% from 2.2% recorded for the same period last year. See figure 1
- The main drivers of an increase in the annual inflation rate were the categories of transport, housing, water, electricity, gas and other fuels, miscellaneous goods and services, health, furnishings, household equipment, and routine maintenance of the house. See figure 2
- On a monthly basis, the inflation rate increased by 0.5%
- The main drivers of an increase in the monthly inflation rate were observed in alcoholic beverages and tobacco, and transport categories
Analysis
- Transport category recorded an increase in the annual inflation rate from (-1.2%) to (11.9%). This was mainly influenced by high prices of fuel (petrol and diesel)
- The annual inflation rate for housing, water, electricity, gas, and other fuels increased from (-1.3%) to (1.2%) as a consequence of an increase in the costs of regular maintenance and repair of dwellings
- The annual inflation rate for miscellaneous goods and services increased from (5.0%) to (6.9%). This was driven by a high demand for financial services
- The annual inflation rate for the health category increased from (2.8%) to (3.9%) due to an increase in the demand for outpatient, medical, dental, and paramedical services
- Furnishings, household equipment, and routine maintenance of the house recorded an increase in the annual inflation rate from (3.4%) to (4.4%). This came as a result of an increase in the price levels of furniture and furnishings
Outlook
- The supply chain bottlenecks is the main factor that has led to a recent rise in the cost of living globally and Namibia is no exception.
- We anticipate that inflation will continue to elevate in the short to medium term with the cost-push factors being the key drivers of inflation.
Figure 1: Annual Inflation rate
Figure 2: Categorical analysis Year on Year %, Namibia
