Namibia’s annual inflation rate for January 2025 stood at 3.2%, marking a decline from the 5.4% recorded in January 2024, according to the latest data released by the Namibia Statistics Agency (NSA).
On a monthly basis, inflation rose by 1.1%, a notable increase from the 0.2% recorded in December 2024. Core inflation for the period stood at 3.7%.
“The headline annual inflation rate for January 2025 stood at 3.2% compared to 5.4% in January 2024. On a monthly basis, inflation was 1.1%, higher than the 0.2% recorded in the preceding month,” said NSA Statistician-General and CEO, Alex Shimuafeni.
A breakdown of inflation trends by region showed that Zone 2 (Khomas region) recorded the highest annual inflation rate at 3.5%, followed by Zone 1, which includes Kavango East, Kavango West, Kunene, Ohangwena, Omusati, Oshana, Oshikoto, Otjozondjupa, and Zambezi, at 3.3%. Zone 3, covering //Kharas, Erongo, Hardap, and Omaheke, reported the lowest rate at 2.6%.
An analysis of average retail prices for selected products in January 2025 revealed disparities across regions. Consumers in Zone 3 paid the highest price for a 5kg bag of maize meal at N$71.57, followed by Zone 2 at N$70.49, while the lowest price of N$68.99 was recorded in Zone 1.
For Rooibos tea (100g), consumers in Zone 3 paid the highest price at N$35.66, followed by Zone 1 at N$33.23, while Zone 2 consumers paid the lowest price at N$32.49.
The primary contributors to the annual inflation rate of 3.2% in January 2025 were Food and Non-Alcoholic Beverages contributing 1.1 percentage points, Housing, Water, Electricity, Gas, and Other Fuels contributing 0.7 percentage points, and Alcoholic Beverages and Tobacco contributing 0.5 percentage points.
On a monthly basis, price levels in Namibia increased by 1.1%, compared to 0.2% in the previous month. The highest changes in annual inflation were observed in Hotels, Cafés, and Restaurants at 8.2%, Food and Non-Alcoholic Beverages at 5.3%, Recreation and Culture at 4.8%, and Education at 4.7%.
The Housing, Water, Electricity, Gas, and Other Fuels category, which accounts for 28.4% of the consumer basket, recorded an annual inflation rate of 2.9% in January 2025, down from 4.5% in January 2024. On a monthly basis, this category registered an inflation rate of 1.3%, up from 0.0% in December 2024.
Food and Non-Alcoholic Beverages, which account for 16.5% of the NCPI basket, recorded an annual inflation rate of 5.3% in January 2025, compared to 6.5% in January 2024. On a monthly basis, inflation for this category remained steady at 1.0%.
The Transport category, accounting for 14.3% of the consumer basket, saw a minimal annual inflation increase of 0.3% in January 2025, compared to 6.1% in the previous year.
This slowdown was reflected in the Operation of Personal Transport Equipment subcategory, which declined from 6.7% to -1.1%, and Purchase of Vehicles, which dropped from 8.4% to 3.1%.
Within the Transport sector, Operation of Personal Transport Equipment recorded a deflation of 1.1%, driven by falling prices in Petrol/Diesel at -3.7%, Spare Parts and Accessories at 1.8%, and Parking Fees at 0.0%. Public Transportation Services inflation increased to 1.4%, compared to 0.5% in January 2024, mainly due to rising costs in Furniture Removal and Transport at 14.2% and Air Transportation at 22.9%.
Vehicle purchases saw inflation slow to 3.1% from 8.4% a year ago, largely due to lower price increases in Motor Cars at 2.9%.
The annual inflation rate for Alcoholic Beverages stood at 2.9% in January 2025, down from 7.4% in January 2024, driven by slow price increases in Beer/Ales/Cider at 1.5%, White Spirits at 4.6%, and Sparkling Wines/Champagnes at 6.3%.
Meanwhile, the Tobacco category recorded an annual inflation rate of 6.4%, slightly lower than the 6.6% recorded in January 2024, with cigarette prices rising by 3.9%.
Goods annual inflation stood at 2.9% in January 2025, down from 6.8% in the previous year.
The annual inflation rate for Services increased slightly to 3.6%, compared to 3.5% in January 2024. Month-on-month, Goods inflation remained unchanged at 0.4%, while Services inflation rose to 2.0% from 0.0% in December 2024.
