Executive summary
- The annual inflation rate increased to 7.1% for October 2022 from 3.6% recorded during the same period last year. See figure 1
- The annual inflation rate averaged 5.9% from January to October 2022 compared to an average of 3.5% recorded during the same period last year.
- The main drivers of an increase in the annual inflation rate remain the transport, hotels, cafes and restaurants, furnishings household equipment, and routine maintenance of the house and food alcoholic beverages, and tobacco. See figure 2
- On a monthly basis, inflation increased by 0.2%
Analysis
- The annual inflation rate for the transport category increased to 17.8% from 10.7% recorded during the same period last year. This was influenced by an increase in the operation of personal transportation (fuel cost)
- An increase in the annual inflation rate for hotels, cafes, and restaurants from 1.4% to 10.6% was driven by an upturn in demand for accommodation services. This is further supported by the increase in national occupancy rate.
- The annual inflation rate for furnishings household equipment and routine maintenance of the house increased to 9.6% from 5.3%. This was attributed to an increase in the price levels of goods and services for routine household maintenance
- Food and non-alcoholic beverages and tobacco which accounts for 16.5% of the inflation basket recorded an increase in the annual inflation rate of 9.1% from 5.2% recorded during the same period last year. This came as a result of an increase in the price levels of fruits, oils, and fats
Figure 1: Annual Inflation rate, Namibia
Figure 2: Sub-Categorical analysis Year on Year %, Namibia
Outlook
- We anticipate that the annual inflation rate for November 2022 to increase. This will be driven by an increase in the prices of food from the 14th of November 2022 and an increase in fuel prices (diesel) as announced by the Ministry of Mines and Energy.