Executive summary
- The annual inflation rate increased to 5.4% from 3.8% recorded during 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, clothing and footwear and furnishings, household equipment, and routine maintenance of the house.
- The main price hikes were recorded for the subcategories of package holidays, public transportation services, and accommodation services. See figure 2
- On a monthly basis, inflation declined by 0.2%, this was mainly influenced by a decline in petrol and diesel prices between April and May 2022.
Analysis
- The transport category recorded an increase in the annual inflation rate of 9.4%. This was mainly influenced by an increase in the prices of public transportation fares and fuel.
- Hotels, cafes, and restaurants recorded an increase in the annual inflation rate of 8% . This was driven by a high demand for accommodation services
- The annual inflation rate for clothing and footwear increased by 3.1% as a result of an increase in the price levels of dry cleaning, repair, and hire of clothing
- Furnishings, household equipment, and routine maintenance of the house recorded an increase in the annual inflation rate of 3% as a consequence of an increase in the price levels of goods and services for routine household maintenance
Figure 1: Annual Inflation rate
Source: NSA & HEI RESEARCH
Figure 2: Sub–Categorical analysis Year on Year %, Namibia
Source: NSA & HEI RESEARCH
Outlook
- We anticipate that the annual inflation rate will remain elevated in the short to medium term due to continuous external cost-push factors.