Namibia’s annual inflation rate accelerated to 4.1% in the 12 months to May 2026, the highest level recorded so far this year, driven largely by sharp increases in fuel and transport costs.
The latest figures released by the Namibia Statistics Agency (NSA) show that inflation rose from 3.5% in May 2025. On a monthly basis, consumer prices increased by 1.2% in May, compared to 1.1% in April.
According to the Namibia Consumer Price Index (NCPI), the transport category was the biggest contributor to inflation during the month, outweighing the impact of slower food price growth.
“The headline inflation rate rose by 4.1% for the 12 months ending May 2026, after rising by 3.5% over the 12 months ending May 2025. The price level increased by 1.2% month-on-month, compared to 1.1% recorded in the previous month,” the report stated.
The transport category, which carries a weighting of 14.3% in the inflation basket, recorded annual inflation of 11.5% in May 2026, compared to a deflation rate of 1.3% in May 2025. The category contributed 1.7 percentage points to the overall inflation rate.
The increase was largely driven by the operation of personal transport equipment, which recorded annual inflation of 15.4%. This followed substantial fuel price increases during the month, with diesel prices rising by N$4.63 per litre and petrol increasing by N$1.40 per litre.
Public transport costs also rose sharply, recording annual inflation of 11.5%, following an increase in taxi fares from N$13 to N$15 and higher rail transport charges.
Housing, water, electricity, gas and other fuels, the largest category in the inflation basket with a weighting of 28.4%, recorded annual inflation of 4.9%, up from 3.6% in May 2025.
The increase was mainly driven by the electricity, gas and other fuels sub-category, which rose to 7.0% from negative 1.1% a year earlier. Rental payments for dwellings also increased slightly from 4.6% to 4.7%.
“The increase in annual inflation for this category was mainly driven by rising prices in the sub-component electricity, gas and other fuels, from -1.1% to 7.0%, and rental payments for dwellings (both owners and renters), from 4.6% to 4.7%,” the NSA said.
Food and non-alcoholic beverages provided some relief to consumers, with annual inflation slowing to 2.0% from 5.8% in May 2025.
The category, which accounts for 16.5% of the inflation basket, saw lower price increases across several key food groups. Bread and cereals recorded deflation of 0.7%, while annual inflation for meat slowed to 3.5%. Oils and fats increased by 1.2%, while fish prices declined by 0.3%.
However, fruit prices remained elevated, recording annual inflation of 12.4%.
Regionally, inflation was highest in Zone 2, which covers the Khomas Region, where annual inflation reached 5.4%, driven by transport, health and household maintenance costs.
Zone 3, which includes the southern, coastal and eastern regions, recorded inflation of 3.6%, while Zone 1 in the northern regions registered the lowest rate at 3.2%, supported by lower food prices.
