Executive summary
- The annual inflation rate increased to 6.0% from 4.1% 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, furnishings, household equipment, routine maintenance of the house, alcoholic beverages, and tobacco.
- The main price hikes were recorded for the subcategories of operation of personal transport equipment, package holidays, and goods and services for household routine maintenance. See figure 2
Analysis
- The transport category recorded an increase in the annual inflation rate of 18.6%. This was mainly influenced by an increase in the prices of petrol/diesel and driving lessons, licenses, and tests
- Hotels, cafes, and restaurants recorded an increase in the annual inflation rate of 8.6%. This was driven by a high demand for accommodation services as the tourism sector shows positive developments
- Furnishings, household equipment, and routine maintenance of the house recorded an increase in the annual inflation rate of 7.1% as a consequence of an increase in the price levels of goods and services for routine household maintenance
- The annual inflation rate for alcoholic beverages and tobacco increased to 5.8% as a result of an increase in the price levels of white spirits
Figure 1: Annual Inflation rate
Figure 2: Sub-Categorical analysis Year on Year %, Namibia
Outlook
- The annual inflation rate will remain elevated in the short to medium term due to global uncertainty and the depreciation of the Rand against the USD.