Inflation in Namibia slowed down marginally to 5.4% in May compared to 5.6% in the prior month, latest data from the Namibia Statistics Agency (NSA) show.
However, on an annual basis, prices increased by 5.4% compared to 3.8% recorded in May 2021.
“Transport; and Food and non-alcoholic beverages continued to be the main contributors to the annual inflation rate with a contribution of (2.4 percentage points) and (1.2 percentage points), respectively,” NSA Statistician-General & CEO, Alex Shimuafeni said.
“The highest change in the annual inflation rate were mainly witnessed in the categories of Transport (16.7%); Hotels, cafes and restaurants (8.5%); Furnishings, household equipment and routine maintenance of the house (7.5%); Food and non-alcoholic beverages (6.6%) and Alcoholic beverages and tobacco (4.7%).”
The Zonal inflation rates for the month of May 2022 revealed that, Zone 2 (Khomas) recorded the highest annual inflation rate of 6.3% followed by Zone 3 (Hardap, Omaheke, //Karas, and Erongo) which recorded an annual inflation rate of 5.1% while Zone 1 (Kavango East, Kavango West, Kunene, Ohangwena, Omusati, Oshana, Oshikoto, Otjozondjupa, and Zambezi) recorded the lowest annual percentage rate of 4.8%.
“On a monthly basis, Zone 2 and Zone 3 both recorded 0.1% while Zone 1 recorded a monthly inflation rate of 0.0 percent,” he said.
NSA’s analysis of the average retail prices of selected products for the month of May 2022 showed that consumers in Zone 2 paid the highest price for Eggs (pack of 6) at N$20.05 followed by Zone 3 at N$19.94, while consumers in Zone 1 paid the lowest price of N$17.90.
“For brown bread, consumers in Zone 2 paid the highest price at N$11.69, while the lowest price was paid by consumers residing in Zone 1 at N$11.39,” Shimuafeni said.
Prices for Oils and fats increased by 27.4% in May 2022 compared to 13.5% recorded during the same time a year earlier.
“The increase was reflected mainly in the price levels of Cooking oil that escalated (from 22.8% to 41.1%) this was the highest annual increase recorded to date as reflected in Chart 7. The increase was further reflected in Cooking fats (from 8.0% to 25.5%); and Margarine & margarine spreads (from 2.7% to 10.5%),”he said.
The Bank of Namibia on Wednesday forecasted Namibia’s overall inflation to average around 5.9% in 2022 from initial estimates of 6%.
“Although overall inflation remains within a reasonable range, inflation risks to the domestic outlook still persist and mainly lingers around supply disruptions, which may continue to put pressure on food and oil prices, “ Bank of Namibia Governor Johannes !Gawaxab said.
IJG inflation model currently forecasts inflation to average between 5% and 6.2% in 2022.
PSG Namibia said although it recently revised its inflation outlook, inflation risks are still skewed to the upside.
“We recently raised our average inflation forecast for 2022 to 5.3% y-o-y from 4.7% previously. However, inflation risks remain skewed to the upside due to the uncertain effects of the ongoing war in Ukraine and the Covid-19 lockdowns in China.”
