CPI Report: February 2022




Report by Turimuye Uandara

Executive summary

  • The annual inflation rate for February 2022 increased to (4.5%), up from (2.7%) recorded for the same period last year. See figure 1
  • The main drivers of an increase in the annual inflation rate were transport, hotels, cafes and restaurants, furnishing, household equipment, and maintenance of the house categories. See figure 2
  • On a monthly basis, inflation declined by 0.2% this was influenced by health as demand for outpatient services, medical, dental, and paramedical decreased

Analysis

  • The transport category recorded an increase in the annual inflation rate from (0.2%) to (13.2%). This was mainly influenced by the operation of personal transport equipment (fuel costs)
  • Hotels, cafes, and restaurants recorded an increase in the annual inflation rate from (-0.8%) to (9.0%). This was driven by an increase in the demand for accommodation services
  • Furnishings, household equipment, and routine maintenance of the house recorded an increase in the annual inflation rate from (3.5%) to (8.2%) as a consequence of an increase in the price levels of goods and services for routine household maintenance

Outlook

  • We anticipate that the annual inflation rate for March 2022 will increase. This will be driven by the transport category due to an increase in fuel prices as announced by the Ministry of Mines and Energy
  • Additionally, sin tax  price adjustments will also contribute to a rise in overall inflation

Figure 1: Annual Inflation rate

Source: NSA & HEI RESEARCH

Figure 2: Categorical analysis Year on Year %, Namibia

Source: NSA & HEI RESEARCH
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