Executive summary
- The annual inflation rate for January 2023 increased to 7.0%, up from 4.6% recorded for the same period last year. (figure 1)
- The two major drivers of an increase in the annual inflation rate were the “food & non-alcoholic beverages”, and transport categories. (figure 2)
- On a monthly basis, Namibia recorded an inflation rate of 1.1% in January 2023 compared to 0.3% recorded in the previous month
Analysis
- Food and non-alcoholic beverages which accounts for 16.5% of the NCPI basket annual inflation increased by 14% during the month of January 2023 compared to 5.6% recorded during January 2022. The increase in the food and non-alcoholic beverages component was mainly driven by an increase in the price levels of fruit, bread, and cereal accounting for 22.3% respectively
- The annual inflation rate for the transport category which accounts for 14.3% of the consumer basket continues to be a driver of the overall inflation although it reduced to 11.1% for January 2023 when compared to 13.5% recorded in January 2022. The decrease in the transport component was mainly driven by a decline in the price levels of operation of personal transport equipment (fuel costs)
Figure 1: Annual Inflation Rate
Figure 2: Sub-Categorical analysis Year on Year and Month on Month (%) change,
Outlook
- We anticipate inflation to remain elevated in the short term as a result of supply-side factors that continues to weigh on demand and supply