Namibia’s annual inflation rate slowed to 3.5% in July 2025, down from 4.6% recorded in the same month last year, according to the latest Namibia Consumer Price Index (NCPI) report released by the Namibia Statistics Agency.
On a monthly basis, inflation stood at 0.1%, edging up slightly from 0.0% in June.
The NCPI report attributes the annual inflation rate to three main categories: Food and Non-Alcoholic Beverages, Housing, Water, Electricity, Gas and Other Fuels, and Alcoholic Beverages and Tobacco.
“The major contributors to the 3.5 annual inflation rate for July 2025 were mainly ‘Food and Non-Alcoholic Beverages,’ contributing 1.2 percentage points; followed by ‘Housing, Water, Electricity, Gas, and Other Fuels,’ which contributed 0.9 percentage points and lastly ‘Alcoholic Beverages and Tobacco’ at 0.8 percentage points,” the report stated.
Food and non-alcoholic beverages, which make up 16.5% of the consumer basket, recorded an annual inflation rate of 6.1% – up from 4.8% in July 2024 – though prices remained flat on a monthly basis.
Housing-related costs, accounting for 28.4% of the consumer basket, saw a moderation in price increases, with annual inflation falling to 3.6% in July, compared to 4.1% a year ago. This was largely due to a sharp drop in electricity, gas, and other fuel prices, which fell from 6.4% to 1.4% year-on-year.
Alcoholic beverages and tobacco, which represent 12.6% of the basket, recorded an annual inflation rate of 6.0%, up from 4.9% in July 2024. However, prices in this category dropped by 0.2% compared to the previous month.
According to the NCPI, “The highest change in the annual inflation rate was witnessed in the categories of ‘Food and Non-Alcoholic Beverages’ recorded at 6.1%; followed by divisions such as ‘Alcoholic Beverages and Tobacco’ (6.0%); ‘Hotels, Cafés, and Restaurants’ (5.1%); ‘Education’ (4.3%) and ‘Housing, Water, Electricity, Gas, and Other Fuels’ (3.6%).”
Regionally, Zone 1 (northern and northeastern Namibia) recorded the highest inflation at 3.9%, followed by Zone 3 (southern and coastal regions) at 3.6%, and Zone 2 (Khomas) at 3.1%.
The report also highlights ongoing declines in the transport sector, which registered a deflation rate of 1.2%, in contrast to the 6.7% increase seen in July 2024. The decline was driven by reduced costs for vehicle purchases and operations.
Despite the broader easing, core inflation – which excludes volatile items like food and energy – stood at 3.9%, slightly higher than the headline rate, suggesting underlying price pressures remain.
