The Namibia Statistics Agency (NSA) says the country’s inflation increased by 7.2% last month compared to 4.5% recorded in March 2022.
The spike in inflation was caused by price increases in food, non-alcoholic beverages, transportation, household goods, and routine home maintenance, which points to a difficult economic climate for consumers.
“The highest changes in the annual inflation rate were mainly witnessed in the categories of food and non-alcoholic beverages (14.6%); transport (9.2%); furnishings, household equipment and routine maintenance of the house (7.4%); miscellaneous goods and services (7.3%); alcoholic beverages and tobacco (6.9%); hotels, cafes and restaurants and recreation and culture each increased by 6.0%,” NSA’s Statistician-General and CEO Alex Shimuafeni said.
This comes as the annual inflation rate for housing, water, electricity, gas and other fuels components, which account for 28.4% of the consumer basket, increased by 3% during March 2023 compared to 1.3% registered in March 2022.
Meanwhile, the Zonal inflation rates for the month of March 2023 revealed that Zone 1 (Kavango East, Kavango West, Kunene, Ohangwena, Omusati, Oshana, Oshikoto, Otjozondjupa, and Zambezi) recorded the highest annual inflation rate of 7.7%.
“This is followed by Zone 3 (//Kharas, Erongo, Hardap, Omaheke) recording an annual inflation rate of 7.2% while Zone 2, (Khomas), recorded the lowest annual inflation rate of 6.6%,” Shimuafeni said.
He added that on a monthly basis, Zone 1 and 3 registered an inflation rate of 0.6% each and Zone 2 recorded 0.4%.
“Analysis of the average retail prices of selected products for the month of March 2023 shows that consumers in Zone 2 paid the highest price for pure sunflower oil (750ml) at N$37.41 followed by Zone 3 at N$36.81, while consumers in Zone 1 paid the lowest price of N$36.05. For stewing beef, consumers in Zone 1 paid the lowest price at N$89.99/Kg, while the highest price was recorded in Zone 3 at N$94.57/Kg,” he noted.
Food and non-alcoholic beverages, which accounts for 16.5% of the NCPI basket, registered an annual inflation rate of 14.6% during the period under review, compared to 4.6% during the corresponding period of 2022.
According to FirstRand Namibia Economist Ruusa Nandago, food inflation is expected to remain high this year given the impact of load-shedding on food production and food supply in South Africa. The weakening exchange rate will also play a role from an import perspective.
