Executive summary
- The annual inflation rate for April 2022 increased to (5.6%) the highest recorded since November 2018 up from (3.9%) recorded in April 2021. See figure 1
- The main drivers of an increase in the annual inflation rate were transport, hotels, cafes and restaurants, furnishing, household equipment, maintenance of the house, and education categories. See figure 2
- On a monthly basis, Namibia recorded an inflation rate of 1.4% in April 2022 in relation to 0.5% recorded in March 2022
Analysis
- The transport category recorded an increase in the annual inflation rate from (7.5%) to (18.9%). This resulted from an increase in the operation of personal transport equipment (fuel costs)
- Hotels, cafes, and restaurants recorded an increase in the annual inflation rate from (-0.2%) to (9.3%). This was influenced 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 (5.3%) to (7.7%) as a result of an increase in the price levels of goods and services for routine household maintenance
- The annual inflation rate for education increased from (0.8%) to (3.1%) due to an increase in the costs of primary (private) and secondary education
Figure 1: Annual Inflation rate
Source: NSA & HEI RESEARCH
Figure 2: Categorical analysis Year on Year %, Namibia
Source: NSA & HEI RESEARCH
Outlook
Inflation continues to upsurge globally augmented by soaring energy and soft commodities prices. We anticipate that the annual inflation rate for May 2022 to remain elevated in the medium term.