Namibia’s annual inflation rate in October 2022 remain unchanged at 7.1%, which was recorded in September driven by rising prices in transport and food, latest figures from the Namibia Statistics Agency (NSA) show
The 7.1% rate is, however, higher than 3.6% recorded in October 2021. NSA noted that on a monthly basis, the inflation rate increased by 0.2% compared to 0.1% recorded a month earlier.
The statistical agency added that Transport and Food and non-alcoholic beverages components continued to be the main contributors to the annual inflation rate with a contribution of 2.6 percentage points and 1.7 percentage points, respectively.
Other contributors include alcoholic beverages and tobacco (0.9 percentage points); Housing, water, electricity, gas, and other fuels (0.6 percentage points) and Furnishing household equipment and routine maintenance of the house (0.5 percentage points).
“The slight growth in the monthly inflation rate was driven by Health which augmented by 0.8 percent compared to 0.4 percent recorded a month earlier, Transport which increased from -1.6 percent to -0.7 percent and Food and non-alcoholic beverages which recorded an inflation rate of 0.7 percent compared to 0.6 percent registered last month,” reads NSA’s latest update.
Meanwhile, the highest changes in the annual inflation rate were mainly witnessed in the categories of Transport (17.8%); Hotels, cafes, and restaurants (10.6%); Furnishings, household equipment and routine maintenance of the house (9.6%); Food and non-alcoholic beverages (9.1%); Alcoholic beverages and tobacco (6.7%) and Recreation and culture (5.2%).
NSA’s Statistician-General & CEO, Alex Shimuafeni said that the Zonal inflation rates for the month of October 2022 revealed that, Zone 2 (Khomas) recorded the highest annual inflation rate of 7.8% followed by Zone 3 (Hardap, Omaheke, //Karas, and Erongo) at 6.8% and Zone 1 (Kavango East, Kavango West, Kunene, Ohangwena, Omusati, Oshana, Oshikoto, Otjozondjupa, and Zambezi) which recorded an annual inflation rate of 6.5%.
“On a monthly basis, Zone 1 and Zone 2 recorded an inflation rate of 0.2% each, while Zone 3 recorded the monthly inflation rate of 0.1%.”
Analysis of the average retail prices of selected products for the month of October 2022 revealed that consumers in Zone 3 paid the highest price for Pure sunflower oil (750ml) at N$41.85 followed by Zone 2 at N$41.37, while consumers in Zone 1 paid the lowest price of N$39.18.
“For brown sugar (1 kg), consumers in Zone 1 paid the lowest price at N$17.49, while the highest price was paid by consumers residing in Zone 2 at N$18.92,” he said.
“Price levels for alcoholic beverages increased by 7.4% in Oct ‘22 vs 5.8% in Sep ’22 and -0.1% in Oct ‘21. The unseasonal increase is likely driven by Namibia Breweries pushing cost increases through to consumers, with the announced price increases for a range of products (Windhoek Lager, Windhoek Non-Alcoholic, King Lager, Hansa Draught, Strongbow Cider) becoming effective from mid-Oct ’22. Price increases for tobacco decelerated to 3.7% in Oct ’22 vs 5.9% in Oct ’21 and 4.5% in Sep ’22,” according to Cirrus Capital.
Namibia’s overall inflation for 2022 is now projected to average around 6.1%, up from 5.8% initially projected according to Bank of Namibia estimates.
The International Monetary Fund (IMF) forecast average inflation would rise to 6.4% in 2022 and start to moderate in 2023.
PSG Namibia forecast CPI inflation will accelerate from an average of 3.6% in 2021 to 6.1% this year, mainly due to higher fuel and food prices.
“Inflation is anticipated to moderate over the medium term. We have raised our inflation forecast to an average of 6.1% in 2022 from 5.9% previously. We expect transport price inflation will remain near double digits for the remainder of the year.”
