Namibia’s annual inflation rate hit a five-year high of 7.1% in September compared to 3.5% recorded in September 2021, largely driven by increases in food, transport and non-alcoholic beverages.
The country last had a high annual inflation of 6.7% in April 2017. However, uncertainty caused by global geopolitics has seen prices rising rapidly since early this year.
Latest figures from the Namibia Statistics Agency (NSA) show that the highest change in the annual inflation rate were mainly witnessed in the categories of transport (19.5%); hotels, cafes, and restaurants (11.0%); furnishings, household equipment and routine maintenance of the house (9.4%); food and non-alcoholic beverages (9.3%); alcoholic beverages and tobacco (5.6%) and recreation and culture (5.5%).
NSA said on a monthly basis, the inflation rate increased by 0.1% in September 2022 compared to an increase of 0.3 % obtained during the past month.
“The slowdown in the monthly inflation rate was reflected mainly in transport (from 0.2% to -1.6%); housing, water, electricity, gas and other fuels (from 0.3% to 0.1%); recreation and culture (from 0.7% to 0.3%) and food and non-alcoholic beverage (from 0.8% to 0.6%).
Transport (2.8 %); food and non-alcoholic beverages (1.7%); alcoholic beverages and tobacco (0.8%; housing, water, electricity, gas, and other fuels (0.6%) and furnishing household equipment and routine maintenance of the house contributed (0.5%),” reads NSA’s latest update.
In economics, inflation refers to a general progressive increase in prices of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation corresponds to a reduction in the purchasing power of money.
The statistics agency noted further the annual inflation rate for the transport category which accounts for 14.3% of the consumer basket continues to be the main driver of the overall inflation, increasing by 19.5% in September 2022 compared to 7.5% registered during the same period of the preceding year.
“The increase in the transport component was mainly reflected in the price levels of operation of personal transport equipment which increased by 30.0%. Despite this on a monthly basis, transport recorded a deflation of 1.6% in September 2022 mainly on account of declines in fuel prices during the period of review compared to 0.2% increase recorded in August 2022,” states the Agency.
Meanwhile, food and non-alcoholic beverages which accounts for 16.5% of the NCPI basket recorded an inflation rate of 9.3% during the month of September 2022 compared to 5.0% registered during the same period of last year.
