Executive summary
- The Annual inflation rate for October 2020 stood at 2.3% down from 3.0% that was recorded for October 2019.See figure 1
- The decline in the annual inflation rate was driven by the decline in the price levels of clothing and footwear, housing, water, electricity, gas and other fuels, transport, hotels, cafes and restaurants and health categories.
- Food and non-alcoholic beverages recorded the highest annual inflation rate for October 2020.See figure 1.
Analysis
- The decline in the annual inflation rate for clothing and footwear from (0.9% to -6.1%), was influenced by low demand due to a drop in consumer confidence, caused by losses of disposable incomes which emanated from retrenchments.
- The category of Housing, water, electricity, gas, and other fuels recorded a decline in the annual inflation rate from (1.9% to -1.3%), this was influenced by slow demand in rental payments for dwelling both owners and renters.
- The annual inflation rate for transport declined from (1.5% to -1.2%), this was influenced by the decline in the price levels of spare parts, accessories, and lubricants for households.
- The annual inflation rate for education declined from (12.0% to 7.0%), this was influenced by the decline in the price levels of pre-primary and primary, secondary, and tertiary education.
- The annual inflation rate for hotels, cafes and restaurants declined from (2.8% to 0.8%), the decline was influenced by a weak demand for accommodation services.
- The annual inflation rate for the category of food and non-alcoholic beverages recorded a robust growth from (4.0% to 7.1%), this was influenced by the increase in the prices of meat, oils, and fats. See figure 2.
Outlook
- The lack of demand due to low consumer confidence in purchasing goods and services continues to negatively influence Namibia’s inflation rate, we anticipate that the inflation rate for November 2020 will remain subdue.
Figure1: Annual inflation rate
Figure 2: Categorical analysis Year on Year %
Report by Monika Kristof