Inflation decreases slightly to 3.3%
The annual inflation rate decreased slightly to 3.3% in November, down from 3.4% in October. On a month on month basis prices rose by 0.2% again when compared to October. On a year on year basis, the basket categories food and non-alcoholic beverages, health and communication grew at a faster rate in November than in October while the other categories slowed somewhat dragging down overall inflation, with transport and clothing prices contracting stock-broking firm IJG reported recently. Year on year inflation is again well below average, largely due to a drop in the price of oil over the past year, and the knock on effects this has on prices. 12 month average inflation reached a new low of 3.5%, and has been coming down steadily since November 2014. The three basket categories that experienced accelerated annual inflation were food and non-alcoholic beverages, health and communication. Accelerating price increases in the food and non-alcoholic beverages basket category was largely driven by fruit and vegetables prices rising relatively more, quickly followed by mineral water, soft drinks and juices as well as oils and fats and bread and cereals. The food price increases could largely be ascribed to the drought currently experienced in Namibia and South Africa. Health prices experienced a price increase of 5.8% year on year and 0.4% month on month,” IJG said.
The only two categories that experienced price contractions on an annual basis were clothing and foot wear and transport, however, transport deflation decreased at a slower pace when compared to October. Price decreases in the clothing and foot wear basket category was spread relatively evenly amongst the components of this category, IJG explained.