Khomas region experienced a headline inflation rate of 5% in July 2024, significantly higher than the national average of 4.6%, latest data from the Namibia Statistics Agency (NSA) shows.
According to the NSA’s Consumer Price Index, the escalating costs of living in the Khomas region are primarily attributed to increases in the price of essential goods and services, including food, transport, and housing.
“The Zonal inflation rates for the month of July 2024 revealed that Zone 2 (Khomas region) recorded the highest rate at 5.0 per cent, followed by Zone 1 (Kavango East, Kavango West, Kunene, Ohangwena, Omusati, Oshana, Oshikoto, Otjozondjupa, and Zambezi regions) at 4.6 per cent while Zone 3 (//Kharas, Erongo, Hardap, Omaheke regions) annual inflation rate was observed at 3.8 per cent,” said NSA Statistician General and CEO Alex Shimuafeni.
NSA reported that the overall inflation rate of 4.6% in July 2024 was primarily driven by increases in transport, housing, water, electricity, gas, and other fuels; and food and non-alcoholic beverages, each contributing 1% to the total. Alcoholic beverages and tobacco added another 0.7%.
“The headline annual inflation rate for July 2024, stood at 4.6 per cent compared to 4.5 per cent registered in July 2023. On a monthly basis, the inflation rate recorded 0.2 percent increase compared to -0.2 per cent witnessed a month earlier,” Shimuafeni said.
The NSA report also says that the housing, water, electricity, gas, and other fuels category, constituting 28.4% of the consumer basket, saw an annual inflation rate of 4.1% in July 2024, up from 2.7% in the same period the previous year.
“This increase was primarily attributed to rising costs for water supply, sewerage, refuse collection and rental payments,” the report reads.
Additionally, the food and non-alcoholic beverages category, accounting for 16.5% of the consumer basket, registered an annual inflation rate of 4.8% in July 2024.
While lower than the 10.5% recorded in July 2023, it continues to impact household budgets.
“Prices for bread, cereals, meat, and vegetables, though increasing at a slower pace compared to the previous year, remain elevated,” it is reported.
Meanwhile, the transport category, which represents 14.3% of the consumer basket, experienced a significant increase of 6.7% in July 2024.
This surge was primarily due to rising fuel prices, impacting the cost of commuting and transportation of goods.
On the other hand, core inflation, which excludes volatile items like food and energy, stood at 3.9% in July 2024. This suggests that underlying inflationary pressures remain relatively contained.
