The country’s annual inflation for March 2022 increased by 4.5% compared to 3.1% recorded in March last year due an increase in prices of transport and food, the Namibia Statistics Agency (NSA) said on Thursday.
“The highest change in the annual inflation rate were witnessed in the categories of Transport (13.8%), Hotels, cafes and restaurants (8.6%), Furnishings, household equipment and routine maintenance of the house (8.1%), Food and non-alcoholic beverages (4.6%) and Alcoholic beverages and tobacco (4.1%),” NSA CEO and Statistician General, Alex Shimuafeni said.
On a monthly basis, the country’s inflation rate stood at 0.5% compared to 0.2% recorded a month earlier.
“The increase in the monthly percentage change was reflected mainly in Transport which increased (from 1.0% to 2.6%); Health (from -0.4% to 0.7%) and Alcoholic beverages and tobacco (from -0.8% to 0.4%),” he said.
The annual inflation rate for Zone 1 made up of Kavango East, Kavango West, Kunene, Ohangwena, Omusati, Oshana, Oshikoto, Otjozondjupa, and Zambezi increased by 3.8% in March 2022 compared to 2.9% registered in March 2021.
“On a monthly basis, the inflation rate for March 2022 increased by 0.5% compared to 0.3% recorded during the previous month.”
Zone 2, which is the Khomas region, the annual inflation rate for March 2022 increased by 5.3% compared to 3% recorded during the same period of 2021.
“The increase was mainly due to increases in the price levels of Transport (14.6%); Hotels, cafés, and restaurants (11.2%) and Furnishing, household equipment and routine maintenance of the house (14.2%).”
Zone 3, made up //Kharas, Erongo, Hardap and Omaheke’s annual inflation rate increased by 4.4% in March 2022 from 3.7% recorded during the same period last year.
The NSA announcement comes as Bank of Namibia (BoN) raised its repo rate by another 25 basis points to 4.25% on Wednesday, as it seeks to reduce second-round effects from sharply rising inflation.
The central bank warned that food and transport will remain elevated going forward, impacting low income earners.
According to advisory firm Simonis Storm, which has adjusted its inflation forecast for Namibia up from 4.7% to 6.1% for 2022, the country’s inflation rate could reach a high of 10.4% this year if Brent crude prices increase to more than US$140 per barrel due to the Russia-Ukraine conflict and the average Rand exchange rate weakens beyond R15.30 against the US dollar.
