Namibia’s headline annual inflation rate eased to 3.2% in December 2025, down from 3.4% recorded in December 2024, as slower food price increases helped contain overall consumer price pressures, according to the latest Consumer Price Index (CPI) bulletin released by the Namibia Statistics Agency (NSA).
Food inflation slowed sharply to 2.6% from 5.9% a year earlier, with several key staples recording lower price growth or outright deflation. Prices for bread and cereals declined by 0.5%, while oils and fats rose by 2.9%, fish by 2.2%, and sugar and confectionery by 2.4%. The easing in food prices was a key factor in moderating overall inflation.
“The headline annual inflation rate increased to 3.2% during the period under review from 3.4% in December 2024. Inflation was 0.1% on a monthly basis, up from 0.0% the month before. At 3.4%, core inflation was marginally higher than the headline rate of 3.2%,” said NSA Statistician-General and Chief Executive Officer, Alex Shimuafeni.
The NSA reported that inflation in December was largely driven by housing, water, electricity, gas and other fuels, which contributed 1.1 percentage points to the overall rate and recorded an annual increase of 4.5%. Food and non-alcoholic beverages, as well as alcoholic beverages and tobacco, each contributed 0.5 percentage points to headline inflation.
The transport category recorded annual inflation of 2.0%, reversing a 1.4% deflation recorded in December 2024. This was mainly due to higher fuel prices and rising vehicle service and repair costs. Inflation for alcoholic beverages and tobacco slowed to 3.7%, with tobacco prices increasing by 5.3% and alcoholic beverages by 3.3%.
Goods inflation stood at 2.7%, lower than the previous year, while services inflation rose to 4.0%, reflecting higher costs related to housing services, education, recreation and hospitality.
“The gradual increase in annual inflation for this category emanated from price increases in the sub-component of ‘electricity, gas and other fuels’, which rose from 1.4% to 4.5%,” the report noted.
Inflation varied slightly across regions. Zone 2, which includes the Khomas Region, recorded the highest annual inflation rate at 3.3%, followed by Zone 3 at 3.2%. Zone 1, covering mainly northern regions, recorded the lowest rate at 3.0%. Fuel and selected food prices also differed across zones, with Zone 3 recording the highest petrol price at N$21.21 per litre and Zone 1 the lowest at N$20.93 per litre.
The average inflation rate for 2025 stood at 3.5%, pointing to a relatively stable price environment over the year.
