Executive summary
- The annual inflation rate for March 2022 increased to (4.5%), up from (3.1%) recorded in March 2021. See figure 1
- The annual inflation rate for March 2022 remained at 4.5% in relation to February 2022.
- The main drivers of an increase in the annual inflation rate were transport, hotels, cafes and restaurants, furnishing, household equipment, and maintenance of the house categories. See figure 2
- On a monthly basis, Namibia recorded an inflation rate of 0.5% in March 2022 in relation to 0.2% recorded in February 2022
Analysis
- The transport category recorded an increase in the annual inflation rate from (2.4%) to (13.8%). 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 (8.6%). This was influenced by an increase in the demand for accommodation services at the back of eased travel restrictions
- Furnishings, household equipment, and routine maintenance of the house recorded an increase in the annual inflation rate from (4.1%) to (8.1%) as a result 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: Categorical analysis Year on Year %, Namibia
Source: NSA & HEI RESEARCH
Outlook
We anticipate that the annual inflation rate will remain elevated in the medium term driven by soft commodities and transport inflation. We project stabilization factors in inflation to come into play over the long term.