Namibia’s annual inflation rate accelerated to 6.9% in December 2022, compared to 4.5% in December 2021 driven primarily by increases in the prices of transport, food, and non-alcoholic beverages, latest official figures show.
However, on a monthly basis, the rate of inflation slowed to 0.3%, a decrease from the 0.5% recorded the previous month, according to data released by the Namibia Statistics Agency.
“The annual inflation rate for the Transport category which accounts for 14.3% of the consumer basket continues to be the main driver of the overall inflation, increasing by 14.8% in December 2022 compared to 14.3% recorded in December 2021 The increase in the Transport component was mainly reflected in the price levels of Operation of personal transport equipment which increased by 22.6% compared to an increase of 19.7% recorded in December of 2021.”
“On a monthly basis, Transport group recorded a deflation rate of 1% in December 2022 compared to an increase of 2% recorded during the previous month.”
The prices for operation of personal transport equipment in Namibia increased by 22.6% in December 2022 according to NSA data, compared to 19.7% recorded in December 2021.
“The increase resulted mainly from price increases recorded in Lubrication (from 3.0% to 11.2%) and Driving lessons, license and tests (from 5.8% to 11.1%).”
Prices for public transportation services according to the NSA recorded a slow increase of 1.4% compared to 8.9% registered during the same period of 2021.
“The increase emanated from increases registered in the price levels of Air transportation (from -10.7% to 17.1%) and Furniture removal and transport of goods which increased (from 3.7% to 26.3%).”
Purchase of vehicles registered a slow increase of 4.5% during the period, compared to 6% recorded during December 2021.
“During the period under review, prices for Petrol/diesel increased slightly to an inflation rate of 36.2 percent compared to inflation rate of 36.1 percent recorded during December 2021.”
This comes as the country’s average annual inflation rate for the year 2022 rose by 6.1% compared to 3.6% registered in the year 2021 and 2.2% registered in the year 2020, mainly driven by the Transport inflation according to the NSA.
The Bank of Namibia forecasts inflation to average 6.1% in 2022 and to fall to 4.9% in 2023, while the International Monetary Fund (IMF) expects the country’s average inflation for 2022 to reach about 6.5% in 2022 and start to moderating this year.
